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.
