Which expression shows the value of a $2500 investment after it has grown by 4.5% per year for 12 years. A - 2500 (1.045) ^12

B - 2500 (1.045) ^144

C - 2500 (1.45) ^12

D - 2500 (1.45) ^144

The answer is A. 2500 (1.045) ^12

This is explained by the formula A (t) = a (1 + - r) ^t.

+ for growth

- for decay

t for time

Since this is growth (the word 'grown' in the question gives us an idea), we add 1 to the rate 0.045.