A bank account earning annual compound interest was opened, and no additional deposits or withdrawals were made after the

Question

A bank account earning annual compound interest was opened, and no additional deposits or withdrawals were made after the initial deposit. The balance in the account after a years can be modeled by b(x) = 850(1.025)^x.
Which statement is the best interpretation of one of the values in this function?
he initial balance of the account decreases at a rate of 97.5% each year.
The balance in the account increases at a rate of 2.5% each year.
The initial balance of the account was $1,025.
The balance in the account at the end of one year is $850.

Kunduz · Accepted Answer

Click to see the answer