Suppose that an investment of 25 dollars comma 000 grows in value at a rate of 3 percent per year. What is the growth factor for this investment?

A growth rate of 3 percent is 0.03 as a decimal. For growth, add the rate to 1: 1 + 0.03 = 1.03, so the growth factor is 1.03. The initial investment amount does not affect the growth factor.

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