Question

Rebecca has a college savings plan. The equation that represents how much money she expects to have saved after x years is f(x) = 5000(1.08)x.

What does the value 5000 represent in the equation? Select all that apply.
Answer Choices:
A. The initial amount of money saved
B. The initial amount of time
C. The amount it increases in value each year
D. The time it takes to be worth $5,000
E. The y-intercept

Answer 1

A. The initial amount of money saved

Explanation:

Answer 2

A. The initial amount of money saved

Explanation:

-The equation
`f(x)=5000(1.08)^x` is a compound interest formula ,

where

• 
  `f(x)` represents the future value after x years.
• 
  `x` represents the number of years or the term of the investment.
• 
  `5000` represents the present value or principal amount of the investment.

Hence, 500 represents the initial amount saved.