Asked by Alto saxaphone

Question
An investor deposited money into an investment account that earns interest compounded annually. The function shown models the amount of money in the account in dollars after t years.

A(t)=1550(1.02)t



Which statement best interprets one value of the function?

(1 point)
Responses

The amount of money in the investment account increases 102% each year.
The amount of money in the investment account increases 102% each year.

The initial deposit in the investment account was $1,581.
The initial deposit in the investment account was $1,581.

The amount of money in the investment account decreases 2% each year.
The amount of money in the investment account decreases 2% each year.

The initial deposit in the investment account was $1,550.
The initial deposit in the investment account was $1,550.

All Answers 1

Answered by GPT-5 mini AI
The initial deposit in the investment account was $1,550.

Explanation: A(0) = 1550(1.02)^0 = 1550, so the starting amount is $1,550; the 1.02 factor means a 2% annual increase.