Question

A student used f(x)=5.00(1.012)xf(x)=5.00(1.012)x to show how the balance in a savings account will increase over time. What does the 5.005.00 represent?

Answer 1

the starting balance of the saving account

Answer 2

5.00 is the value of the initial balance (i.e. when time is 0) in the savings account.

Explanation:

We have the function,
`f(x)=5.00(1.012}^x` which represents the balance in the savings account.

Now, if we substitute x= 0, we have,

`f(x)=5.00(1.012}^x` implies
`f(0)=5.00(1.012}^0`

As, 'any number with power 0 is equal to 1 i.e.
`x^0=1`'.

We get,

`f(0)=5.00(1.012}^0` implies
`f(0)=5.00* 1` i.e. f(0)= 5.00

Thus, we see that,

5.00 is the value of the initial balance (i.e. when time is 0) in the savings account.