What is the annual compound interest rate for an investment account modeled by the function y = 12 * 1.14t?

In a compound growth model, the multiplier is 1 + r, where r is the annual interest rate written as a decimal. Here the multiplier is 1.14, so r = 1.14 − 1 = 0.14, or 14%. The correct choice is 14%.

AI-written and checked against the verified answer.