Problem
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. $\$ 12,819.47$ PREVIOUS
Solution
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 ：\(\boxed{2492.36}\)
