Answer: The balance in the account increases at a rate of 2.5%
Step-by-step explanation:
The balance in the account after x years is modeled by
b (x) = 850(1.025)x
In another form
b(x) = 850(1 + 25%)^x
Where
850 = initial deposit
25% = Interest rate
"+" sign signifies the increase
Therefore the balance in the account increases at a rate of 2.5%
