The amount of money, in dollars, in a savings account after x years is given by M(x) = 10,000(1.03)x. What does the value 1.03 represent?A) The original deposit was $103. B) There is a 3 percent increase in the savings account each year. C) The savings account earns $103 interest per month. EliminateD) There is a 103 percent increase in the savings account each year.

Answer:Option B) There is a 3 percent increase in the savings account each year.Step-by-step explanation:we have[tex]M(x)=10,000(1.03^x)[/tex]This is a exponential function of the form[tex]y=a(b^x)[/tex]whereM(x) represent the amount of money in a saving accountx represent the number of yearsa is the original deposit (y-intercept)b is the baser is the rate or percent increase[tex]b=(1+r)[/tex]The percent increase per year is the base of the exponential function decreased by 1.so[tex]r=b-1[/tex]In this problem we have[tex]a=\$10,000[/tex] ---> original deposit[tex]b=1.03\\r=1.03-1=0.03=3\%[/tex]ThereforeThe percent increase per year is 3%