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?

Answer 1

0.98

Explanation:

Answer 2

A decrease of 2% means only 98% of the original value lasts. Therefore Hal should multiply with 98%

To convert percentages to decimals, one has to divide by 100, and therefore
98% = 98/100 = 0.98.

Hence, Hal should multiply with 0.98.