A sum of \(9,000\) dollars was invested in a certificate of deposit (…

|Question 2Math

Question

Prompt

A sum of

9, 000

dollars was invested in a certificate of deposit (CD) that earns interest, and no other deposits or withdrawals were made after that. The function

f (x) = 9, 000 (1 + 0.03)^{x}

gives the value of the CD, in dollars,

x

years after the investment was initially made, where

x \leq 5

. Which of the following is the best interpretation of the statement "

f (2)

is approximately equal to

9, 474.08

" in this context?

The value of the CD would be approximately

9, 474.08

dollars if invested at

2%

interest.

9, 474.08

days after the investment was made, the value of the CD was approximately

2

times greater than its initial value.

2

years after the investment was made, the value of the CD was approximately

9, 474.08

dollars.

2

years after the investment was made, the value of the CD was approximately

9, 474.08

dollars greater than its initial value.