Answer: 0.98
Step-by-step explanation:
The exponential decay equation in x years is given by :-
[tex]y=A(1-r)^x[/tex], where A is the initial amount and r is the rate of decay( in decimal).
Given: The initial investment = $10,000
The rate of decay = 2% = 0.02
Substitute these values in the above equation, we get
[tex]y=10,000(1-0.02)^x\\\Rightarrow\ 10,000(0.98)^x[/tex]
Here 0.98 is the multiplicative rate of change , the function will change by the constant ratio of 0.98 .
