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Given the equation, y = 3{(0.87)^x} y = 3 ( 0.87 ) x , where y is the amount of money in thousands in x years, describe what is happening?

a. The amount of money is decreasing at a rate of 13% per year
b. The amount of money is decreasing at a rate of 87% per year
c. The amount of money is decreasing at a rate of 13 per year
d. The amount of money is decreasing at a rate of 87 per year

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MrEquation
The correct answer is Choice A.

The amount of money is decreasing at a rate of 13% per year. The rate that is shown in the equation is 0.87 or 87%. 87% is 13% lower than 100%. That is the amount of the decrease each time. 

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