Question

The function below represents the interest Jessi earns on an investment. Identify the term that represents the amount of money originally invested. f(x) = 1,000(1 + 0.05)x

Answer 1

1000

Explanation:

Answer 2

`\boxed{1000}`

Explanation:

The formula for the amount accrued [ƒ(x)] on an investment earning compound interest is

`f(t) = P(1 + r)^(t)`

where

P = the amount of money invested (the principal)

r = the interest rate per payment period expressed as a decimal fraction

t = the number of periods

Your formula is

`f(x) = 1000(1 + 0.05)^(x)\\\text{By comparison, we see that the term that represents the amount of money}\\\text{originally invested is $\boxed{\textbf{1000}}$}`