The exponential function $f (x) = 15, 000 {(1.02)}^{x}$ $f(x)= 15,000(1.02)^x$ models the amount of money in a savings account over a period of time. What does the value 15,000 represent?

Question

6323 views around the world

You can reuse this answer
Creative Commons License

Answer 1 · 2017-03-09T20:50:06

See explanation

The value $15, 000$ $15,000$ represents the sum of money put into the account at the beginning.

$0.02$ $0.02$ represents the interest rate ( $2 %$ $2%$ ), and $x$ $x$ represents time

The exponential function f(x)= 15,000(1.02)^xf(x)=15,000(1.02)xf(x)= 15,000(1.02)^x models the amount of money in a savings account over a period of time. What does the value 15,000 represent?