a#7 (schoology) 8.1-8.2 mixed practice\nan investor deposited money into an investment account that earns…
a#7 (schoology) 8.1-8.2 mixed practice\nan investor deposited money into an investment account that earns interest compounded annually. the function shown models the amount of money in the account in dollars after x years.\na(x)=1470(1.04)^x\nwhich statement best interprets one value in the function?\nthe initial deposit in the investment account was $1574.\nthe amount of money in the investment account increases 104% each year.\nthe initial deposit in the investment account was $1470.\nthe amount of money in the investment account decreases 4% each year.
Answer
Brief Explanations:
The compound - interest formula is $A(t)=P(1 + r)^t$, where $P$ is the principal (initial deposit), $r$ is the annual interest rate, and $t$ is the number of years. In the function $A(x)=1470(1.04)^x$, when $x = 0$, $A(0)=1470(1.04)^0=1470$, so the initial deposit $P = 1470$. The factor $(1 + r)=1.04$, which means $r=0.04$ or 4%, so the amount of money increases by 4% each year, not 104% each year.
Answer:
The initial deposit in the investment account was $1470.