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

Question

Mathematics

Boo Bug

7 May, 12:42

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

+1

Answers (2)

Know the Answer?

Chicken Legs · Answer 1

Answer: B

Explanation:

0.98

Twix · Answer 2

0.98

Step-by-step explanation:

Explanation

The investment of $10,000 decreases by 2% every year. So the following year is usually (100 - 2) = 98% of the previous year. This is a geometric progression.

In this case the first term = 10000

The second term = 98% * 10000 = 9800.

The common ratio = 9800/10000=49/50

The multiplicative rate of change that should be in Hal's function = 49/50=0.98.

The equation of the exponential rate would be;

10,000ₓ0.98ⁿ.

where n is the number years.

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?0.020.981.021.98

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