Suppose that inflation causes the value of a dollar to decrease at a rate of 4.5% per year. to use a general exponential model to find the value of the dollar at some future time compared to its present value, what would you set r equal to?
select the correct answer below.

a.
-4.5

b.
4.5

c.
-0.045

d.
0.045

Option C. -0.045

Step-by-step explanation:

we know that

The general exponential model to find the value of the dollar at some future time compared to its present value is equal to

where  

F is the value of the dollar at some future time  

P is the present value  

r is the rate of increasing or decreasing in decimal  (remember that the equation is general)

t  is Number of Time Periods  

In this problem

The rate is decreasing

so

r=-4.5%=-4.5/100=-0.045

the forst and 3rd

step-by-step explanation:

111

step-by-step explanation: