Answer:
a. The initial amount of money that was left in this savings account was of 5000.
b. Decrease of 2% each year.
Step-by-step explanation:
Exponential function:
An exponential function, with an initial value of A(0), and a decay rate of r, as a decimal, is given by:
In this question, we have:
a. What was the initial amount of money that was left in this savings account?
This is y(0) = 5000
The initial amount of money that was left in this savings account was of 5000.
b. What is the percent of change each year in this savings account?
First as a decimal.
1 - r = 0.98
r = 1 - 0.98
r = 0.02
So a decrease of 2% each year.