Claire deposited \$2,500 into an account that accrues interest monthly. She made no additional deposits or withdrawals. After 2 years, Claire had \$2,762.35 in the account. What is the annual interest rate of the account?



Compound interest formula: $V(t)=P\left(1+\frac{r}{n}\right)^{n t}$

$t=$ years since initial deposit

$n=$ number of times compounded per year

$r=$ annual interest rate (as a decimal)

$P=$ initial (principal) investment

$V(t)=$ value of investment after $t$ years

A5\%

B31\%

C26\%

D11\%