Question

The function f(x)=2,500(1.012)^x represents the amount, in dollars, in a savings account after x years. Which statement is true? A. The account earns 0.12% interest per year. B. The account earns 0.012% interest per year. C. The initial amount in the account was $2.500. D. The amount in the account increases by $2,500 each year,

Answer 1

C. The initial amount in the account was $2,500.

Step-by-step explanation:

The function that represents the amount, in dollars, in a savings account after x years is given as:

`f\mleft(x\mright)=2,500\mleft(1.012\mright)^x`

When x=0 (Initially)

`\begin{gathered} f\mleft(0\mright)=2,500\mleft(1.012\mright)^0 \\ =2,500*1 \\ =\$2,500 \end{gathered}`

Therefore, the initial amount in the account was $2,500.