Answer:
B) 20%
Step-by-step explanation:
Exponential equation:
An exponential equation is given by:
[tex]A(t) = A(0)(1+r)^t[/tex]
In which A(0) is the initial amount and r is the growth rate, as a decimal.
In this question:
[tex]P(t) = 85(1.2)^t[/tex]
Growth rate:
We want to find r, so:
[tex]1 + r = 1.2[/tex]
[tex]r = 1.2 - 1 = 0.2[/tex]
The growth rate is of 0.2 = 2%, and the correct answer is given by option B.
