Question

The function f(x) = 5,000(1.05)* models an investment of $5,000 earning 5%
annually. Identify and interpret the values of a and b. What is the balance of
the investment after 15 years, assuming no further deposits or withdrawals?

Answer 1

Answer:

$10350

Step-by-step explanation:

Given data

We are given that the function is

f(x) = 5,000(1.05)^x

The compound interest expression is given as

f(x) = P(1+r)^x

f(x) = 5,000(1.05)^t

the first term 5000 is the principal

the second term 1.05 is the rate

for x= 15

f(x) = 5,000(1.05)^15

f(x) = 5,000*2.07

f(x) =10350

Hence for 15 years the amount is $10350