AnswersMathematics IIIRewriting Exponential Functions — QuizQuestion 8
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Rewriting Exponential Functions — Quiz

Question 8 • Mathematics III

The value, cap v , of Kalani’s stock investments over a time period, x , can be determined using the equation cap v is equal to 750 times 0 point 8 0 raised to the negative x power What is the rate of increase or decrease associated with this account?

Answer
A
20 percent decrease
B
25 percent decrease
C
20 percent increase
D
25 percent increase

Explanation

Rewrite 0.80^(-x) as (1 ÷ 0.80)^x = 1.25^x. A growth factor of 1.25 means the account’s value increases by 25% each time period, so the correct choice is 25 percent increase.

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