Aditya invested money in an account where interest is compounded every year. She made no withdrawals or deposits.

Question

The function A(t)=728(1+0.04)^t represents the amount of money in the account after t years.
How much money did Aditya originally invest?

Answer 1

The function \( A(t) = 728(1 + 0.04)^t \) represents the amount of money in the account after \( t \) years, where:

• \( A(t) \) is the amount in the account at time \( t \),
• \( 728 \) is the principal amount (the initial investment),
• \( 0.04 \) is the interest rate (4% per year), and
• \( t \) is the number of years the money is invested.

To find out how much money Aditya originally invested, we can look at the principal amount in the function, which is \( 728 \).

Therefore, Aditya originally invested $728.