Questions: 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 1.96

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
1.96

Transcript text: Hal is asked to write an exponential function to represent the value of a $\$ 10,000$ investment decreasing at $2 \%$ annually. What mutiplicative rate of change should Hal use in his function? 0.02 0.98 1.02 1.96

Solution

Solution Steps

Step 1: Understand the Problem

The problem asks for the multiplicative rate of change for an exponential function representing a $10,000 investment decreasing at 2% annually.

Step 2: Determine the Rate of Change

When an investment decreases by a certain percentage, the multiplicative rate of change is calculated by subtracting the percentage decrease from 1.

Step 3: Calculate the Multiplicative Rate

Since the investment decreases by 2%, the multiplicative rate of change is:

\[ 1 - 0.02 = 0.98 \]

Final Answer

The multiplicative rate of change Hal should use in his function is $\boxed{0.98}$.

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