Final answer:
The future value of a $5,400 investment at a 10% annual interest rate compounded over 17 years is $25,925.40, which is not one of the provided options, hence the correct answer is 'None of these'.
Step-by-step explanation:
The question is asking to calculate the future value of an investment of $5,400 at a 10% annual interest rate compounded annually over 17 years. To find the future value, we can use the formula for compound interest, which is:
A = P(1 + r/n)^(nt)
Where:
- A is the amount of money accumulated after n years, including interest.
- P is the principal amount (the initial amount of money).
- r is the annual interest rate (decimal).
- n is the number of times that interest is compounded per year.
- t is the time the money is invested for, in years.
We have:
- P = $5,400
- r = 10% or 0.10
- n = 1 (since the interest is compounded annually)
- t = 17 years
Using the formula, we get:
A = 5400(1 + 0.10/1)^(1*17)
A = 5400(1 + 0.10)^17
A = 5400(1.10)^17
A = 5400(4.801)
A = $25,925.40
Therefore, the future value of the investment is $25,925.40, which means the correct answer is d) None of these.