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advanced-math

Which function represents a value that decreases by 50% each year?

A

y=100(0.5)ty = 100(0.5)^t

B

y=100(1.5)ty = 100(1.5)^t

C

y=100(50)ty = 100(50)^t

D

y=100(0.05)ty = 100(0.05)^t

Correct Answer: A

Choice A is the correct answer. Decrease of 50% means factor is 0.5.

  1. Identify Rate: r=0.50r = 0.50.
  2. Calculate Factor: b=10.50=0.50b = 1 - 0.50 = 0.50.
  3. Equation: y=100(0.5)ty = 100(0.5)^t.

💡 Strategic Tip: Losing 50% is the same as keeping 50%. This is also called half-life.

Choice B is incorrect because 1.5 means 50% growth. Choice D is incorrect because 0.05 means losing 95%.