Question

50 PTS

Answer 1

Answer:

The correct option is B.

Step-by-step explanation:

The amount of money, in dollars, in a savings account after x years is given by  $M(x) = 10000(1.03)^{x}$

This above equation represents that $10000 becomes M(x) after x years at a rate of interest 3% compounded in each year.

Therefore, the value in the expression 1.03 represents that there is a 3 percent increase in the savings account each year.

So, the correct option is B. (Answer)