Question

In the compound interest equation, A(x)= 500(1.07)x, what does the 500 represent?

The starting value

the growth factor

the amount in the account after x years

the annual rate of interest

Answer 1

The starting value.

Explanation:

In the compound interest equation A(x)= 500(1.07)x, 500 represents the initial balance, or the starting value.