Answer:
Option b
Step-by-step explanation:
We have a compound interest problem. With an annual interest rate of 0.675 and an initial payment of 8500, with t = 25 years
Then you must use the annual compound interest formula, which is represented by a growing exponential function:
[tex]y = e ^{ht}[/tex]
Where:
h is the interest rate of 0.675
y is the money in the savings account as a function of time
Then substitute the values in the formula and we have:
[tex]y = e ^{0.675(25)}[/tex]
[tex]y = 45,950.57[/tex]
