A=130 (1.05) ^x by what percent does the balence increase each year?

5%

Step-by-step explanation:

The question showing a growing function that commonly used in compound interest calculation. The formula for compound interest is:

A = P (1 + r) ^ t

A = amount of the balance after a period of t

P = principal, the initial money deposit

r = rate

t = time

The percent of balance increase should be represented by the rate (r). In this equation, the principal will be 130, (1+r) will be 1.05, and time will be x.

The value of rate (r) will be:

(1+r) = 1.05

r = 1.05-1 = 0.05 = 5%