Answer:
Option B) There is a 3 percent increase in the savings account each year.
Step-by-step explanation:
we have
This is a exponential function of the form
where
M(x) represent the amount of money in a saving account
x represent the number of years
a is the original deposit (y-intercept)
b is the base
r is the rate or percent increase
The percent increase per year is the base of the exponential function decreased by 1.
so
In this problem we have
---> original deposit
Therefore
The percent increase per year is 3%