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Alex deposited \(x\) dollars into a new account that earned \(8\) percent annual interest, compounded annually. One year later Alex deposited an additional \(x\) dollars into the account. If there were no other transactions and if the account contained \(w\) dollars at the end of two years, which of the following expresses \(x\) in terms of \(w?\)
A. \(\dfrac{w}{1+1.08}\)
B. \(\dfrac{w}{1.08+1.16}\)
C. \(\dfrac{w}{1.16+1.24}\)
D. \(\dfrac{w}{1.08+1.08^2}\)
E. \(\dfrac{w}{1.08^2+1.08^2}\)
Answer: D
Source: Official Guide
A. \(\dfrac{w}{1+1.08}\)
B. \(\dfrac{w}{1.08+1.16}\)
C. \(\dfrac{w}{1.16+1.24}\)
D. \(\dfrac{w}{1.08+1.08^2}\)
E. \(\dfrac{w}{1.08^2+1.08^2}\)
Answer: D
Source: Official Guide
