Personal Savings and Consumer Credit: Part Two — Test
Question 8 • Advanced Financial Algebra
If the value of a stock is represented by 8^−2 , what does this represent in terms of its actual value using the rules for negative exponents?
Answer
A
1/64
B
1/16
C
1/8
D
64
Explanation
A negative exponent means take the reciprocal of the base raised to the positive exponent: 8⁻² = 1/(8²). Since 8² = 64, the value is 1/64, which is choice B.
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