A certain investment grows at a rate of 4% per year. If the initial investment is $1,200, the value after 5 years can be expressed as . The value of is ___________.
Answer & Analysis
Analysis
Question Analysis
This problem assesses the understanding of the exponential growth model and the ability to identify the growth rate.
Key Concept Explanation
In the exponential growth model , the term represents the periodic growth rate. For an annual growth rate, should be in decimal form.
Step-by-step Solution
1. Identify the given values: Initial investment
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