F (t) = Q0 (1+r) ^t. Find the growth rate, r, to the nearest thousandth, given f (0.01) = 1.06 and f (0.11) = 1.09.

To find the ratio, you just need to divide the two function and solve it. The calculation would be:

F (t) = Q0 (1+r) ^t

F (0.11) / F (0.01) = 1.09/1.06

Q0 (1+r) ^0.11 / Q0 (1+r) ^0.01 = 1.0291

(1+r) ^ (0.11-0.01) = 1.0291

(1+r) ^0.10 = 1.0291

(1+r) ^0.10*10 = 1.0283 ^10

(1+r) = 1.3325

r = 0.323