To save for a car when he turns 18, Pascale deposited $500 each year into a savings account with a 7.5% interest rate compounded annually.

Year
Beginning Balance
Interest Earned
Ending Balance
1
$500.00
$37.50
$537.50
2
$1,037.50
$77.81
$1,115.31
3
$1,615.31
$121.15
$1,736.46
4
$2,236.46
$167.73
$2,404.19
5

Using the formula A = P (1 + r) Superscript t, what is the value of the account at the end of the fifth year?

$3,071.92
$3,122.00
$3,851.77
$4,140.65