Question

A bank deposit that earns interest annually is given by the function f(x)=500(1.03)^x. What was the initial deposit?

Answer 1

Hey there!

The answer should be $500
because in the equation f(x) = P (1+r/n)^nt
P = the principal amount of money invested
And in the given equation P = 500

Hope this helps :)

Answer 2

That formula means $500, earning 3% interest, compounded at the end of each year, for ' x ' years.