Andrea invested $2,000 in an online currency. If the value of the currency increases at a rate of 14% per year, the situation can be modeled using the equation `A(t)=2000(1.14)^{t}`, where A is the amount in the investment after t years. What is the amount in the investment after four years? Round your answer to the nearest cent.

Question

Andrea invested $2,000 in an online currency. If the value of the currency increases at a rate of 14% per year, the situation can be modeled using the equation `A(t)=2000(1.14)^{t}`, where A is the amount in the investment after t years. What is the amount in the investment after four years? Round your answer to the nearest cent.

GPT 3.5 · Answer

To find the amount in the investment after four years, we substitute t = 4 into the equation A(t) = 2000(1.14)^t:

A(4) = 2000(1.14)^4
A(4) = 2000(1.74901499504)
A(4) ≈ 3498.03

So, the amount in the investment after four years is approximately $3498.03.