the value, v, of kalanis stock investments over a time period, x, can be determined using the equation v =…

Answer:

D. 25% increase

Explanation:

Step1: Rewrite the equation

The general form of an exponential - growth/decay function is $V = a(b)^x$. Given $V = 750(0.80)^{-x}$, we can rewrite it using the negative - exponent rule $a^{-n}=\frac{1}{a^{n}}$. So, $V = 750(\frac{1}{0.80})^{x}=750(1.25)^{x}$.

Step2: Identify the growth/decay factor

In the exponential function $V = a(b)^x$, if $b>1$, it is a growth function, and if $0 < b<1$, it is a decay function. Here, $b = 1.25$.

Step3: Calculate the rate of increase

The rate of increase $r$ in an exponential growth function $y=a(1 + r)^x$ is related to the growth factor $b$ by the formula $b=1 + r$. Since $b = 1.25$, then $1+r=1.25$, so $r=1.25−1 = 0.25$ or 25%. So, there is a 25% increase.