The equation a = 1300 (1.02) 7 is being used to calculate the amount of money in a savings account. what does 1.02 represent in this equation?

For this case we have an equation of the form:

y = A * (b) ^ t

Where,

A: initial amount

b: growth rate

t: time

The given equation is:

a = 1300 (1.02) ^ 7

Where,

b = 1.02

It represents a growth of 2% on the initial amount.

Answer:

1.02 represented in this equation a growth of 2% on the initial amount.