Answer:
The rate of increase is 38%
Step-by-step explanation:
The base of the expression (1.38) is slightly more than 1.3, which represents a 30% increase from 1. In finance and economics, interest rates and growth rates are often expressed as percentages above 100 (e.g., 130% = 30% increase from 100%).
Given the context of the problem and the values provided, a 38% increase aligns better with the base of the expression.
However, it's important to note that without additional information about the intended interpretation of the expression, we can't definitively say it represents a 38% increase.
Here's why the other options are less likely:
Rate of increase is 62%: This is less likely because the base (1.38) is closer to a 38% increase than a 62% increase.
Rate of decrease: The expression represents an exponential growth because the base is greater than 1. So, a decrease is not applicable.
