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Taber invested money in an account where interest is compounded every year. He made no withdrawals or deposits. The function A(t) = 525(1 + 0.05)t represents the amount of money in the account after t years. How much money did Taber originally invest?

User Schmop
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Taber invested money in an account where interest is compounded every year. He made no withdrawals or deposits.

The function A(t) = 525(1 + 0.05)t represents the amount of money in the account after t years.

The function is explained as below

Amount = Principal * ( 1 + interest rate ) ^ time

Principal is the amount that is invested in the beginning

Therefore, Taber originally invested $525

User Crayola
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