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07.05.2020 •
Mathematics
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 x 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?
The 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.
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