To determine the amount that will be on the account after 4 years you have to apply the given exponential function that models the amount of money on the account with respect to the time.
[tex]f(t)=ae^{rt}[/tex]
Where
a represents the initial amount
r represents the interest rate expressed as a decimal value
t is the time period in years
The initial amount on the account is a= $600
The time period is t= 4 years
The interest rate is r=5%, divide it by 100 to express it as a decimal value:
[tex]r=\frac{5}{100}=0.05[/tex]
Using this information, you can calculate the final amount:
[tex]\begin{gathered} f(t)=ae^{rt} \\ f(4)=600e^{0.05\cdot4} \\ f(4)=600e^{0.2} \\ f(4)=732.84 \end{gathered}[/tex]
After 4 years there will be $732.84 on the account. The correct option is B.
