Answer:
An exponential function is: [tex]A(t) = P(1+r)^t[/tex]
Value of the investment in 4 years is, $9,116.29688
Step-by-step explanation:
Using formula of an exponential function
[tex]A(t) = P(1+r)^t[/tex] .....[1]
where
A(t) is the amount
P is the principal
r is the rate of interest in decimal
t is the time in years
As per the statement:
P = $7500
r = 5% = 0.05
t =4 years
then substitute these in [1] we get;
[tex]A(4) = 7500(1+0.05)^4[/tex]
⇒[tex]A(4) = 7500(1.05)^4[/tex]
Simplify:
[tex]A(4) = 7500 \cdot 1.21550625 = \$9,116.29688[/tex]
Therefore, the value of the investment in 4 years is, $9,116.29688
