Question

Suzanne adopted a new marketing strategy to increase sales at her bakery. Her earnings are compounded weekly. The total amount of money earned, in dollars, after x years is shown by the following expression.

Which statement below best describes the coefficient, 5,000?
The coefficient, 5,000, best describes the number of times the earnings are compounded.
The coefficient, 5,000, best describes Suzanne's annual earnings.
The coefficient, 5,000, best describes the rate at which Suzanne's earnings are increasing.
The coefficient, 5,000, best describes Suzanne's initial earnings.

Answer 1

The correct answer is the last choice.

In a compound interest equation, the first value is the initial investment. In this case, it would be 5000. After the 5000, you would enter the rate that is being used.

Answer 2

The coefficient, 5,000, best describes Suzanne's initial earnings.

Explanation:

5000 represents the initial amount

here the initial earnings

Whenever amount earned is increasing compoundly we write

if rate of increasse is r% and t = no of weeks

Earnings at end of t weeks =
`5000(1+(r)/(100) )^t`

for all t = 1,2,3....

Thus 5000 appears as a coefficient for all t's

5000 is nothing but the initial earnings

Option D is right

The coefficient, 5,000, best describes Suzanne's initial earnings.