Set 1: Exponential Functions (Intermediate)

Choice A is correct. Choice A is the correct answer. Calculate the interest earned. 1. Values: $P = 30000$, $r = 0.072$, $n = 12$, $t = 1$. 2. Final Amount: $A = 30000(1 + \frac{0.072}{12})^{12} = 30000(1.006)^{12}$. 3. Calculate: $(1.006)^{12} \approx 1.0745$, so $A \approx 32,235$. 4. Interest: $32,235 - 30,000 = 2,235$. Strategic Tip: Interest earned = Final amount - Principal. Choice B is incorrect because this uses simple interest, not compound. Choice C is incorrect because the calculation is wrong. Choice D is incorrect because this is too high.