which of the following applications does the function below model

Question

f(x)500(1.02)^4x

 

$500 on deposit for 4x years, interest paid at 8% per year, compounded annually.

$500 on deposit for x years, interest paid at 2% per year, compounded quarterly.

$500 on deposit for x years, interest paid at 2% per year, compounded annually.

$500 on deposit for x years, interest paid at 8% per year, compounded quarterly.

Answer 1

If one were to insert the needed (and missing) = symbol between f(x) and the coefficient 500, one would have an exponential function that would represent the accumulation of money that began with $500, and was compounded 4 times per year at 8% per annum, for x years (4x quarters, quarterly interest rate 2%).  LAST choice is the correct one.