Try on your own
Is the equation A = 21000(1 -0.12)'a model of
exponential growth or exponential decay, and what
is the rate (percent) of change per time period?
1) exponential growth and 12%
2) exponential growth and 88%
3) exponential decay and 12%
4) exponential decay and 88%
Milton has his money invested in a stock portfolio.
The value, v(x), of his portfolio can be modeled
with the function v(x) = 30,000(0.78)", where x is
the number of years since he made his investment.
Which statement describes the rate of change of the
value of his portfolio?
1) It decreases 78% per year.
2) It decreases 22% per year.
3) It increases 78% per year.
4) It increases 22% per year.