Question

Consider a savings account earning annual compound interest with no additional deposits or withdrawals made after the initial deposit. The balance in the account after x years can be modeled by the function s(x) = 2.000(1.045) Which statement is the best interpretation of one of the values in this function? A) The initial balance of the account is $2,000. B) The balance in the account at the end of one year is $2,000. The initial balance of the account increases at a rate of 104.5% each year. D) The initial balance of the account decreases at a rate of 4 5% each year.​

Answer 1

Answer:The initial balance of the account is $2,000.

f(x) = abx, where a = initial value, b = change factor, and x = time period.

Answer 2

The initial balance of the account is $2,000.

Explanation:

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