Answer:
G
Explanation:
Try to understand what this equation is saying and what plugging in different values would represent.
At x=0, b(0)=850; which means the initial balance is $850. So H is incorrect.
At x=1, b(1)=871.25; which means that after 1 year, the initial balance will have increase to $871.25. So J is incorrect.
Since the initial vacation of 850 is being multiplied by a factor which is greater than one, the balance will be increased each year. So F is incorrect.
Finally, if we look at the factor by which we are multiplying, do a simple Algebraic step, and convert it into percentages we get:
1.025 = (1 + 0.025) = 100% + 2.5%
Essentially this is showing us that the balance will increase by 2.5% on however much is in the account each year.
So G is your answer.