If 7500 dollars is invested at an interest rate of 5 percent each year, what is the value of the investment in 4 years? Write an exponential function and solve.

For annual growth at 5%, multiply the starting amount by 1.05 for each year. The exponential function is y = 7500(1.05)^t, so after 4 years, y = 7500(1.05)^4 ≈ $9,116.30. This matches choice A, which gives the correct function and value.

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