Question

Using technology, we determined that Mary’s investment account can be modeled by the function, M(x) = 3.03(2.18)^x in thousands of dollars. What was Mary’s initial investment?
$3.03
$4.96
$3,030
$4,960

Answer 1

Initial investment can be calculated by setting the value of x to zero since it is an initial value where time is zero. Using the given model, we calculate as follows:

M(x) = 3.03(2.18)^x
M(0) = 3.03 (2.18)^0
M(0) = 3.03 <---------FIRST OPTION