GGG 3.2 Growth Rates- Solving Real World Issues

GGG 3.2 Growth Rates- Solving Real World Issues

Focus Question:

How can we use growth rates in real life, especially in regards to investing?

#1 How to use a table to write an equation

• Step 1: Find the growth rate- what are you multiplying the previous value by to get the next? ---> 1.8

• Step 2: Find your starting amount- y value when x is 0---> 100

• Step 3: Set up the function---> f(x)=100(1.8)^t

Multiple Choice

What is the starting value (y-intercept) for this table that you would use to write the function?

• $10,991

• 2008

Multiple Choice

What is the growth factor for this data? Divide y2/y1 to get this! Don't overthink.

• 30

• 1.03

• 1

• 103

Multiple Choice

Knowing that the starting value is $10,991 and the growth factor is 1.03, write a function.

• f(x)=2008(1.03)^6

• f(x)=1.03(10,991)^t

• f(x)=10,991

• f(x)=10,991(1.03)^t

#2 How to find growth rate as a percent

• Step 1: Subtract (y2-y1)---> 180-100

• Step 2: Divide by 100---> 80/100

• Step 3: Convert decimal to percent---> 0.8 = 80% (THIS IS YOUR GROWTH RATE)

Multiple Choice

If the growth factor is 1.5, what is the growth rate as a percent?

• 15%

• 50%

Multiple Choice

If the growth factor is 1.06, what is the growth rate as a percent?

• 60%

• 6%

Multiple Choice

If the growth factor is 1.75, what is the growth rate as a percent?

• 75%

• 7.5%