Answer:
The interest rate for the given investment is 18%.
Step-by-step explanation:
We are given that,
The function representing the investment model is, [tex]y=12(1.18)^t[/tex].
It is required to find the interest rate for the investment.
Since, the function can be re-written as,
[tex]y=12(1.18)^t[/tex]
i.e. [tex]y=12(1+0.18)^t[/tex]
So, on comparing with the formula for compound interest i.e. [tex]A=P(1+r)^t[/tex], where 'r' is the interest rate.
We have that,
The interest rate for the given investment is 0.18 i.e. 18%.
