Question

What is the multiplier that corresponds to 12% exponential decay(answer choices in picture)?

Answer 1

`0.88^x`

Explanation:

Exponential decay formula is given as
`a(1 - r)^x`, where,

a is the initial amount

r is the decay rate

x is the time interval

Therefore, the multiplier that corresponds to 12% decay is
`(1 - r)^x = (1 - (12)/(100))^2 = (1 - 0.12)^x = 0.88^x`