asked 115k views
4 votes
What is the future value, a, of the principal p = $2000 invested at an interest rate r = 0.055 for t = 3 years, using the formula a = p(1 + rt)?

a) $2177.50
b) $2132.50
c) $2067.50
d) $2032.50

asked
User Lassej
by
8.9k points

1 Answer

6 votes

Final Answer:

a) $2177.50 because The discrepancy in the answer choices suggests a typographical error, and the most accurate option aligning with the calculated value is (a) $2177.50.

Step-by-step explanation:

The future value (a) of the principal amount ($2000) invested at an interest rate (r) of 0.055 for a period of 3 years, using the formula \(a = p(1 + rt)\), is calculated as follows:

\[a = 2000 \times (1 + 0.055 \times 3)\]

\[a = 2000 \times (1 + 0.165)\]

\[a = 2000 \times 1.165\]

\[a = 2330\]

Therefore, the future value (a) is $2330. However, this doesn't match any of the provided options. The closest answer is (a) $2177.50, which appears to be a typographical error in the answer choices. The correct value should be $2330 based on the calculation, but considering the given options, the most accurate choice is (a) $2177.50. It's important to note and address discrepancies between the calculated result and the provided answer choices, choosing the option that best aligns with the calculated value.

answered
User Davidbludlow
by
8.7k points
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