Question

The function below represents the annual interest Victoria earns on a savings account. Identify the term that represents the amount of money originally deposited in the account.

f(x) = 300(1 + 0.03)x

300
1
0.03
x

Answer 1

The correct option is 1.

Explanation:

The function is

`f(x)=300(1+0.03)^x`

We need to find the term that represents the amount of money originally deposited in the account. It means we need to find the initial amount.

Substitute x=0 in the given function, to find the initial value of the function.

`f(0)=300(1+0.03)^(0)`

`f(0)=300(1)`

`f(0)=300`

The term 300 represents the amount of money originally deposited in the account. Therefore the correct option is 1.

Answer 2

`\$300`

Explanation:

In this problem we have a exponential function of the form

`f(x)=a(b)^(x)`

where

a is the initial value ( value of the function when the value of x is equal to zero)

b is the base

r is the rate

b=1+r

we have

`f(x)=300(1+0.03)^(x)`

therefore

The term that represents the amount of money originally deposited in the account is the initial value

For x=0

substitute

`f(0)=300(1+0.03)^(0)`

`f(0)=\$300`