Question

the exponential model below represents the balance of an investment, in dollars, $x$ years from now. what is meaning of 12795 in the model?
$f(x)=12795(1.04)^x$
show your work here
○ every year, the investments balance increases by $12795
○ every year, the investments balance decreases by $12795
○ the investments balance will be zero after 12795 years
○ the investments balance today is $12795
○ the investment will have doubled in amount after 12795 years

Explanation:

Step1: Define initial time (x=0)

Substitute $x=0$ into the model:
$f(0) = 12795(1.04)^0$

Step2: Simplify using exponent rule

Any number to the 0 power is 1:
$f(0) = 12795 \times 1 = 12795$

Answer:

The investment's balance today is $\$12795$