The equation A = 1750 (1.04) t represents an account balance t years after the account was created.

Which statement is correct?

a

The account balance will increase 4% each year.

b

The account balance will decrease 4% each year.

c

The account balance will increase 0.04% each year.

d

The account balance will decrease 0.04% each year.

The correct statement is A. The account balance will increase 4% each year.

Step-by-step explanation:

Let's recall that 1.04 is the result of adding:

1 + 0.04 and, we can also write 0.04 as 4/100 or 4%,

in consequence,

1.04 = 1 + 4%, where we're increasing an additional 4%.

The correct statement is A. The account balance will increase 4% each year.