Question

30 POINTS

Victoria has $103 earned from babysitting saved at home, and the amount is modeled by the function h(x) = 103. She reads about a bank that has savings accounts that accrue
interest according to the function s(x) = (1.03)* - 1. After combining the two functions, the new function is g(x) = 103(1.03)* - 1. Using complete sentences, explain what the 103 represents in this new function. What is the interest rate the bank is giving to Victoria?

Answer 1

103 represents how much money Victoria is depositing into the bank, or her principal.

The interest rate is 1.03, or 3%.