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

Answer 1

Answer:

Hal is expected to use 0.98

Step-by-step explanation:

Hal is expected to use 0.98, the reason is that 2% of $10,000 will give $200

i.e (2/100)*10,000= $200.

therefore 10,000-200= $9800.

Since the money is decreasing by 2%, we have 100-2= 98% = 0.98

hence when 10,000 is multiplied by 0.98 we have $200 which is 2% of $10,000