If 5000 dollars is invested at an interest rate of 4 percent each year, what is the value of the investment in 5 years? Write an exponential function and solve.

For annual interest, use the exponential growth formula y = P(1 + r)^t, where P = 5000, r = 0.04, and t = 5. Thus y = 5000(1.04)^5 ≈ 6083.26 dollars. The correct choice is A, which gives the function and value.

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