Question

You deposit $1000 into an account earning 1% interest every month. Write a function that represents the situation.

a) F(x) = 1000(1.01)^x
b) F(x) = 1000(0.01)^x
c) F(x) = 1000(x)^0.01
d) F(x) = 1000(1.1)^x

Answer 1

The correct function is F(x) = 1000(1.01)^x, where F(x) represents the future value of the investment after x months.

Step-by-step explanation:

The correct function that represents the situation is:

F(x) = 1000(1.01)^x

In this function, 'F(x)' represents the future value of the investment after 'x' months, '1000' represents the initial deposit, and '1.01' represents the monthly interest rate (1% interest every month). The exponent 'x' represents the number of months the money is invested for.

For example, if you want to find the future value after 3 months, you can substitute 'x' with '3' in the function:

F(3) = 1000(1.01)^3

F(3) = 1000(1.030301)

F(3) ≈ 1030.301