Question

Julian opened a college savings account. The amount of money in his account can be calculated using the function c(t) = 400(1.04)t, where t represents the time in years since the initial deposit. What does the value 400 represent in the function?

Answer 1

The value 400 in the function represents Julian's initial deposit in the college savings account, forming the base for calculating compound interest.

Step-by-step explanation:

The value 400 in Julian's college savings account function, c(t) = 400(1.04)t, represents the initial deposit amount or the principal amount he placed into the account when he opened it. This amount is the base on which compound interest is calculated. As the function indicates, each year the amount of money in the account will grow by a factor of 1.04, reflecting a 4% annual interest rate.