Question

A bank account earning annual compound interest was opened, and no additional deposits or withdrawals were made after the initial deposit. The balance in the account after
 years can be modeled by 
.
​
​Which statement is the best interpretation of one of the values in this function?
A The initial balance of the account decreases at a rate of 97.5% each year.
B The initial balance of the account was $1,025.
C The balance in the account increases at a rate of 2.5% each year.
D The balance in the account at the end of one year is $850.

Answer 1

B The initial balance of the account was $1,025.