To determine the correct interpretation of Mr. Ling's interest rate, we need to examine the formula that describes the balance in his savings account after \( t \) years, which is usually expressed in the form of compound interest. The general formula for compound interest is:
\[ A = P \left(1 + \frac{r}{n}\right)^{nt} \]
where:
- \( A \) is the amount of money accumulated after \( n \) years, including interest.
- \( P \) is the principal amount (the initial amount of money).
- \( r \) is the annual interest rate (decimal).
- \( n \) is the number of times that interest is compounded per year.
- \( t \) is the number of years the money is invested or borrowed.
Since the specific formula for Mr. Ling's account is not provided in your question, you would typically need that formula to determine the rate and compounding frequency.
However, given the multiple choices, we can analyze them:
- If the interest rate were \( 0.85% \), then the decimal form would be \( 0.0085 \).
- If the interest rate were \( 3.4% \), then the decimal form would be \( 0.034 \).
The compounding frequency would also influence how we interpret the annual rate depending on whether it is compounded annually (once per year) or quarterly (four times per year).
Without the exact formula or the context (e.g., the full equation with coefficients), we cannot specify the correct answer definitively. However, based on the options provided:
- If the interest compounded annually, the options A and B might be applicable.
- If the interest compounded quarterly, the options C and D might be applicable.
Thus, to identify the correct interpretation, you would need to check the specific details in the balance formula (not provided here).
If no additional context is given, you could make logical deductions based on the context in your study materials or examples presented. If possible, please provide the formula or context for analysis!