If an investment declines by 20 each year in an exponential

If an investment declines by 20% each year in an exponential pattern, by how much does it change over two years? Question options:

A) the value after two years is 0.6 times as large as the starting value

B) the value after two years is (0.2)(2) times as large as the starting value

C) –36%

D) -40%

let the value of the investment after t year is

P=P0(1-r)^t which is exponential

here, r=20%=0.2

t=2 year

so, P=P0(1-0.2)^2=P0(0.8)^2=0.64Po

so, change in values=final - initial=0.64P0 - 1P0= -0.36 P0

so, % change is= - 36%........(c)ans