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

$2492.36$

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 ： $2492.36$