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Question

The function A(t)=2,500(1.05)tA(t)=2,500(1.05)^t gives the amount of money in a savings account after t years when $2,500 is invested at an annual interest rate of 5%. Find A(2) to find the amount of money in the savings account after 2 years. Round to the nearest cent.

Solution

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Answered 2 years ago
Answered 2 years ago
Step 1
1 of 2

Substitute tt with 22 in A(t)A(t) and simplify:

A(2)=25001.052==2756.3A(2)=2500\cdot 1.05^2=\\\\ =2756.3

After 2 years, there will be $2756.3\$2756.3 in savings account.

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