$f(x)=2,000(1.005)^{3x}$ The given function $f$ models the balance of…

Question

Prompt

f (x) = 2, 000 (1.005)^{3 x}

The given function

f

models the balance of a bank account, in dollars,

x

years after it is opened. Which statement is the best interpretation of

(1.005)^{3}

Every 4 months, the balance increases by about $5.

At the end of every 4-month interval, the balance increases by about 0.5% of the balance at the beginning of the 4-month interval.

Every 3 years, the balance increases by about $5.

At the end of every 1-year interval, the balance increases by about

1.5%

of the balance at the beginning of the 1-year interval.