The correct option is C 2.005
(1.02)4+(0.98)4
=(1+0.02)4+(1−0.02)4
All the even terms at even positions would be eliminated and we would be left with.
2(1+4C2(0.02)2+4C4(0.02)4)
=2(1+6(4)(10−4)
Higher terms can be neglected, as they would yield a value greater than 3 decimal places.
Hence, 2(1+(0.0024)
=2(1.0024)
=2.0048
By rounding off we get 2.005.