Question

A bank deposit that earns interest annually is given by the function f(x)=500(1.03)^x. What was the initial deposit?f(x)=500(1.03)^x

Answer 1

$500$
This is because the interest is annually, this means that every year the interest is given over wat you already had + what you earned in interest.
The growth factor is 1.03 (or 3%) and X is after how many years.
You started with 500 and this grows with factor:
${1.03}^{x}$