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 x years can be modeled by b(x)=850(1.025)x

What was the initial balance in the account?
a) $850
b) $25
c) $825
d) $1,000

Answer 1

The initial balance in the account can be determined by evaluating the function b(x) with x set to 0. In this case, the initial balance in the account was $850.

Step-by-step explanation:

The initial balance in the account can be determined by evaluating the function b(x) with x set to 0. In other words, we need to find b(0). Given that the function is defined as b(x) = 850(1.025)^x, we have:

b(0) = 850(1.025)^0 = 850(1) = 850

Therefore, the initial balance in the account was $850, option a).