A mother opens a savings account when her child is born. The account earns compound interest. 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)=5000(1.045)x.
Which statement is the best interpretation of one of the values in this function?
A mother opens a savings account when her child is born. The account earns compound interest. 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)=5000(1.045)x.
Which statement is the best interpretation of one of the values in this function?
The balance in the account at the end of year 2 was $5,225.
The initial balance of the account was $1,045.
The balance in the account increases at a rate of 4.5% per year.
The balance decreases 1.045% per year.