Question 6 • Advanced Financial Algebra
Use the compound-interest formula with P = $2,000, r = 0.03, n = 2, and t = 2.5. There are 2 × 2.5 = 5 compounding periods, so A = 2,000(1 + 0.03/2)^5 = 2,000(1.015)^5 ≈ $2,154.57. The correct choice is A, $2,154.57.
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