Since the value 0.98 is less than 1, we can therefore say that balance in this account is decreasing.
<h3>
How to recognize Exponential Function.</h3>
Exponential Function can be used for increase rate and also for decay rate. The difference between the two are the plus and minus signs. To put it in another perspective, If Y = P(M)³
If M is less than one, that means it is decaying or decreasing. And if M is greater than one, that means it is increasing.
Given that Some banks charge a fee on savings accounts that are left inactive for an extended period of time. And the equation
y = 5000(0.98)^x represents the value, y, of one account that was left inactive for a period of x years.
According to the equation, to know if the balance in this account is increasing or decreasing, we will analyze the value 0.98.
Since the value 0.98 is less than 1, we can therefore say that balance in this account is decreasing.
Learn more about Exponential Function here: brainly.com/question/2456547
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