If a function decreases by 5% each year, then the yearly decay factor is
A) 1.05
B) 5
C) 0.05
D) 0.95

Name: If a function decreases by 5% each year, then the yearly decay factor is A) 1.05 B) 5 C) 0.05 D) 0.95
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Question

Quizplus · Accepted Answer

Since the function is decreasing, we need a factor that is less than one. The percentage of the decrease represents the amount that the factor decreases by, so the correct yearly decay factor is 1 - 5% = 0.95, which is option D.

If a Function Decreases by 5% Each Year, Then the Yearly