Using exponential function concepts, it is found that the common ratio would be given by 0.989.
What is an exponential function?
A decaying exponential function is modeled by:
[tex]A(t) = A(0)(1 - r)^t[/tex]
In which:
- A(0) is the initial value.
- r is the decay rate, as a decimal.
- 1 - r, also as a decimal, is the common ratio.
In this problem, the amount decays 1.1% a year, hence:
- r = 0.011.
- 1 - r = 1 - 0.011 = 0.989.
The common ratio would be given by 0.989.
More can be learned about exponential function concepts at
#SPJ4