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

Hal should use a multiplicative rate of change of 0.98.

Step-by-step explanation:

To represent the value of a $10,000 investment decreasing at 2% annually, Hal should use an exponential function with a multiplicative rate of change of 0.98.

To calculate the multiplicative rate of change, we need to subtract the annual decrease rate from 1. In this case, 2% decrease is equivalent to 100% - 2% = 98%. To express it as a decimal, we divide by 100, resulting in 0.98.

Therefore, the multiplicative rate of change that Hal should use in his function is 0.98.