allery(1.01)^5 evaluated using the binomial expansion to first two terms only is approximately
A1.0010
B1.05
C1.0510
D1.10
Answer & Solution
Correct answer: B. 1.05
(1 + 0.01)^5 ≈ 1 + 5 · 0.01 = 1.05 to first order.
Exact value 1.0510… — option A captures the leading approximation.
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