Given:
model y = 500(1.035)^x is the value of the an investment after x years.
the growth factor of this model is 1.035
Let us assume that x = 3 and x = 2
y = 500(1.035)² = 500 (1.07) = 535
y = 500(1.035)³ = 500 (1.11) = 555
growth factor = 555 / 535 = 1.037 or 1.035
