68Exponential growth, V=2500(1.04)^t
The value , in dollars, of an investment years after it was bought is . What is the value of the investment, in dollars, 2 years after it was bought? A) 2,600 B) 2,704 C) 2,812 D) 5,200
The investment is worth $2,704 after 2 years, which is answer B. Plugging t = 2 into V = 2500(1.04)^t gives 2500 × 1.0816 = 2704, matching the year-by-year growth from 2,500 to 2,600 to 2,704.