Question

hal is asked to write an exponential function to represent the value of a $10,000 investment decreasing at 2% annually. what multiplicative rate of change should hal use in his function?
0.02
0.98
1.02
1.98

Explanation:

Step1: Convert percentage to decimal

$2\% = \frac{2}{100} = 0.02$

Step2: Calculate decay factor

$1 - 0.02 = 0.98$

Answer:

0.98