Question

Given the exponential function A (x)= P(1+r)^2 what value will or make the function of decay function

Answer 1

r<0

Explanation:

The exponential function
`A(x)= P(1+r)^2` is

• a decay function, if
  `1+r<1;`
• an increase function, if
  `1+r>1.`

Thus, for the exponential function to be the exponential decay function the following must hold

`1+r<1\Rightarrow r<0.`