Question

Given the exponential function A(x) = P(1 + r)x, what value for r will make the function a decay function?

r = 2.1
r = −0.1
r = 0
r = 0.1

Answer 1

Any negative value of r will make the sum 1+r be less than 1.

The appropriate choice is r = -0.1.

Answer 2

Answer:

Option 2nd is correct

-0.1  value for r will make the function a decay function

Step-by-step explanation:

An exponential decay function is given by:

$y = a(1-r)^x$

where,

a>0 is the initial value,

r rate of decrease (0<r < 1) and

x is the time

As per the statement:

Given the exponential function

$A(x) = P(1 + r)^x$

from the given options and by definition, we have;

r = -0.1

Therefore, -0.1  value for r will make the function a decay function