hal is asked to write an exponential function to represent the value of a $10,000 investment decreasing at…
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?\n0 0.02\n0 0.98\n0 1.02\n0 1.98
Answer
Explanation:
Step1: Understand the concept
When there is a decrease of $r%$, the multiplicative rate of change $b$ in an exponential - decay function $y = a\cdot b^{x}$ is given by $b=1 - r$.
Step2: Convert the percentage to a decimal
The rate of decrease is $2%$, so $r = 0.02$.
Step3: Calculate the multiplicative rate of change
Substitute $r = 0.02$ into the formula $b = 1 - r$. Then $b=1 - 0.02=0.98$.
Answer:
0.98