A student used f(x) =5.00(1.012)^x

Question

to show how the balance in a savings account will increase over time. What does the 5.00 represent?

Question 3 options:

The annual interest rate of the savings account

The number of years the savings account has earned interest

The starting balance of the savings account

Answer 1

In the equation \( f(x) = 5.00(1.012)^x \), the term \( 5.00 \) represents the starting balance of the savings account.

So, the correct answer is:

The starting balance of the savings account.