Question

For the annual rate of change of +70%, find the corresponding growth or decay factor.

0.70
1.70
170
70

For the annual rate of change of -75%, find the corresponding growth or decay factor.

-75
1.25
-0.75
0.25

I'm confused, please help? How can I solve this? Thanks

Answer 1

Corresponding growth or decay can be solved by

F = 1 + i

Where I is the fraction of rate of change

So for number 1

F = 1 + 0.7

F = 1.70 is the corresponding growth

So for number 2

F = 1 – 0.75

F = 0.25 decay factor