Yui makes a list of the balances in her savings account at the end of each month. She notices that each month’s total is 5% greater than the previous month’s total. She writes a recursive formula to describe the account balances.

A 5% increase means each month’s balance is the previous balance plus 5% of that balance. As a multiplier, this is 1 + 0.05 = 1.05, so the recursive formula multiplies the previous month’s balance by 1.05. The correct choice is 1.05.

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