Question

A bank account earning annual compound interest was opened with an initial deposit. No withdrawals or deposits were made after account creation. The balance in the account after $$t$$ years can be modeled by the equation $$f(x)=1270(1.04)^{t}$$. Which statement is the best interpretation of one of the values in this function?

Accepted Answer

The initial balance of the account was $$\$1270$$.

Answer

The initial balance of the account decreases at a rate of $$96\%$$ each year.

Answer

The balance in the account at the end of one year is $$\$1270$$.

Answer

The initial balance of the account increases at a rate of $$96\%$$ each year.

Question 40 - High School Algebra I Practice Test for the STAAR test