Multiple Choice

A prompt engineer is crafting a few-shot demonstration to teach a language model how to solve multi-step financial problems. The goal is to create a clear, replicable reasoning pattern that the model can follow. Below are two versions of the reasoning chain for the same problem.

Problem: Calculate the total amount after 2 years if $1000 is invested at an annual interest rate of 5%, compounded annually.

Version A: The principal is $1000 and the rate is 5%. After the first year, the interest is 1000 * 0.05 = 50. The new principal is 1000 + 50 = 1050. After the second year, the interest is 1050 * 0.05 = 52.50. The final amount is 1050 + 52.50 = 1102.50. The final answer is $1102.50.

Version B: The principal is $1000 and the rate is 5%. For Year 1, we calculate the interest: ≪1000 * 0.05 = 50≫. The new principal is the original principal plus the interest: ≪1000 + 50 = 1050≫. For Year 2, we calculate the new interest: ≪1050 * 0.05 = 52.50≫. The final amount is the Year 1 principal plus the Year 2 interest: ≪1050 + 52.50 = 1102.50≫. The final answer is $1102.50.

Which version is a more effective demonstration for the language model, and why?

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Updated 2025-10-08

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