Peter saved up \( \$ 20,000 \) in an account earning a nominal \( 5 \% \) per year compounded continuously. How much was in the account at the end of two years? Round the answer to nearest dollar. Select the correct answef below:

To find out how much was in Peter's account at the end of two years, we can use the continuous compounding formula, which is given by: \[ A = Pe^{rt} \] Where: - \( A \) is the amount in the account at time \( t \) - \( P \) is the principal amount (\$20,000) - \( r \) is the nominal interest rate (5\% or 0.05) - \( t \) is the time in years (2 years) - \( e \) is the base of the natural logarithm, approximately equal to 2.71828 Plugging in the values: \[ A = 20000 \times e^{0.05 \times 2} \] \[ A \approx 20000 \times e^{0.1} \] \[ A \approx 20000 \times 1.10517 \quad (\text{using } e^{0.1} \approx 1.10517) \] \[ A \approx 22103.40 \] Rounding to the nearest dollar, the amount in the account at the end of two years would be approximately \( \$22,103 \).