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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

User Lassej
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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.

User Davidbludlow
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8.2k points