Answer:
r<0
Step-by-step explanation:
The exponential function [tex]A(x)= P(1+r)^2[/tex] is
- a decay function, if [tex]1+r<1;[/tex]
- an increase function, if [tex]1+r>1.[/tex]
Thus, for the exponential function to be the exponential decay function the following must hold
[tex]1+r<1\Rightarrow r<0.[/tex]
