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 0.02
O 0.98
1.02
1.98

Answer 1

B) 0.98

Explanation:

I took the test on Edg

Answer 2

0.98

Explanation:

The investment starts at $10,000.

$10,000 is 100% of the investment.

In the first year, it loses 2% of its value. That means that after 1 year, the value of 100% of $10,000 is decreased by 2% of $10,000.

100% - 2% = 98%

After the first year, the investment is worth 98% of the original value.

98% as a decimal is 0.98

Answer: 0.98