8
QuizMultiple Choice

Exponential Functions and Financial Literacy — Quiz

Question 8 • Advanced Financial Algebra

Simplify the expression (10^5)/(2^2) , which represents a bond that loses half its value every 5 years, to find its value after 10 years.

Answer
A
2 cubed times 5 squared
B
2 cubed times 5 to the 5th power
C
2 cubed times 5 cubed
D
2 to the 7th power times 5 to the 5th power

Explanation

Rewrite 10 as 2 × 5: (10^5)/(2^2) = (2^5 × 5^5)/(2^2). Subtract exponents for the powers of 2, giving 2^(5−2) × 5^5 = 2^3 × 5^5. This matches “2 cubed times 5 to the 5th power.”

AI-written and checked against the verified answer.

Previous
Next