You make an investment of $250 and know that it has an average annual growth rate of 7%. Let's do an
analysis to see how much money you'll have over a period of time and how much that return has grown
from your initial investment, assuming your growth rate remains unchanged.
1. Write an equation that represents your investment where x represents the number of years
that has passed since you started and y represents your account balance after x years.
Review
To calculate percent growth (return on investment) use the formula:
New Value - Original Value/
Original Value x 100