Question

The value of a saving account earning interest after a few years is given by the equation:



y=1500(1+0.02)^3


Evaluate the exponential equation.

A.
$1591.80

B.
$1591.82

C.
$1590.81

D.
$1591.81

Answer 1

To evaluate the expression \( y = 1500(1 + 0.02)^3 \), we need to simplify it step by step:

1. **Calculate \( 1 + 0.02 \)**:
\[
1 + 0.02 = 1.02
\]

2. **Raise \( 1.02 \) to the power of 3**:
\[
(1.02)^3 = 1.02 \times 1.02 \times 1.02
\]
Calculating this:
\[
1.02 \times 1.02 = 1.0404
\]
\[
1.0404 \times 1.02 = 1.061208
\]

3. **Now multiply by 1500**:
\[
y = 1500 \times 1.061208
\]
Calculating this:
\[
y = 1591.812
\]

4. **Rounding to two decimal places**:
\[
y = 1591.81
\]

The correct answer is **D. $1591.81**.