ExplanationTo solve this question, remember that the formula for finding the result of periodic increases at a certain rate is

\((Original_Amount)(1 + rate)^{number_of_periods}\).

In this case, the final amount would be \(1000(1.15)^5\).

The correct answer is choice (B). If you forgot the formula, you could calculate the final amount after 5 years, and then calculate all the answers for a match.

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Sandy

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