Question

The function below represents the interest Larissa earns on an investment. Identify the term that represents the amount of money originally invested.
f(x) = 7,000(1 + 0.03)x

1
7,000
0.03
1.03

Answer 1

Answer:

Option b

Step-by-step explanation:

Answer 2

Option b: 7000

Explanation:

The function that Larissa earns on an investment is

$f(x)=7000(1+0.03)^{x}$

The amount of money originally invested by Larissa can be found using the compound interest formula,

$f(x)=p(1+r)^{x}$

where

P is the amount of money invested. (Principal)

r is the rate of interest which can be expressed as decimals.

x is the number of periods.

Hence, comparing $f(x)=7000(1+0.03)^{x}$ with the formula $f(x)=p(1+r)^{x}$, the principal amount can be determined.

Thus, the principal amount is 7000.