Question

The value, V, of Kalani’s stock investments over a time period, x, can be determined using the equation V=750(0.80)^-x. What is the rate of increase or decrease associated with this account?
20% decrease
20% increase
25% decrease
25% increase

Answer 1

Answer:

The rate of this account corresponds to a increse of 25%.(Option 4)

Step-by-step explanation:

To find out the increase/decrease rate, first we need to re express the exponential term:

V=750*(0.80)^-x

By applying the respectives properties we can express the exponent of the equation as follows:

(0.80)^-x  = 1/(0.8^x) = (1^x)/(0.8^x) = (1/0.8)^x = 1.25^x

Then the Kalani's stock investments can be written as:

V=750*1.25^x

Then the above equation can be expressed as:

V=750*(1+0.25)^x

Where 0.25 represents a increment rate of 25%

Answer 2

Answer:

25% increase

Step-by-step explanation:

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