A 723 Qul₹ Representing Exponential Functions
Question 7 of 10
Maria invested \$2000 in an account that earns $4.5 \%$ interest, compounded annually. The formula for compound interest is $A(t)=P(1+i)^{t}$
How much did Maria have in the account after 5 years?
A. $\$ 2450.00$
B. $\$ 10,450.00$
C. $\$ 2492.36$
D. $\$ 12,819.47$
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Answer

$\boxed{2492.36}$

Steps

Step 1 ：Given the principal amount (P) as $2000$, the interest rate (i) as $4.5\%$ or $0.045$, and the time (t) as $5$ years.

Step 2 ：Use the compound interest formula: $A(t)=P(1+i)^{t}$

Step 3 ：Plug in the values: $A(5)=2000(1+0.045)^{5}$

Step 4 ：Calculate the final amount: $A(5)=2000(1.045)^{5}\approx 2492.36$

Step 5 ：$\boxed{2492.36}$