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The function below represents the interest Kristina earns on an investment. Identify the term that represents the amount of money originally invested.

f(x) = 5,000(1 + 0.04)x

1
0.04
1.04
5,000

Respuesta :

znk

Answer:

[tex]\boxed{5000}[/tex]

Step-by-step explanation:

The formula for the amount accrued on an investment earning compound interest is

[tex]f(x) = P(1 + r)^{x}[/tex]

where

P = the amount of money invested

r = the interest rate per payment period expressed as a decimal fraction

t = the number of periods

Your formula is

[tex]f(x) = 5000(1 + 0.04)^{x}\\\text{By comparing the formulas, we see that the amount of money invested is $\boxed{\textbf{5000}}$}[/tex]

The term that represents the amount of money originally invested is option (D) 5,000 is the correct answer.

What is compound interest?

Compound interest is the interest you earn on interest. Compound interest is the interest calculated on the principal and the interest accumulated over the previous period.

For the given situation,

The function is [tex]f(x) = 5,000(1 + 0.04)x[/tex]

The amount invested is the principal.

The formula of amount of compound interest is

[tex]A=P(1+r)^{n}[/tex]

On comparing the function with the formula of compound interest, the principal is [tex]5000[/tex].

Hence we can conclude that the term that represents the amount of money originally invested is option (D) 5,000 is the correct answer.

Learn more about compound interest here

https://brainly.com/question/13155407

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