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)^5
Which statement is the best interpretation of one of the values in this function?
The initial balance of the account is $2,000.
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
The initial balance of the account decreases at a rate of 4.5% each year.