Asked by Alto saxaphone

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)

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

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

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

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

All Answers 1

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

Explanation: In A(t) = 1550(1.02)^t, the 1550 is the value at t = 0 (the initial amount). The factor 1.02 means the account grows by 2% per year (not 102%).