Suppose you have 100$ in a savings account earning 2% interest a year. After five years, how much would you have?

A. more than $102

B. exactly $102

C. less than $102

D. None of the above

Question

Mathematics

Damian Hodge

16 June, 16:46

Suppose you have 100$ in a savings account earning 2% interest a year. After five years, how much would you have?

A. more than $102

B. exactly $102

C. less than $102

D. None of the above

+3

Answers (1)

Know the Answer?

Diana Frank · Answer 1

Answer: A. more than $102

Step-by-step explanation:

The formula for compound interest (compounded yearly) is;

A = P (1+r) ^n

P = principal = $100

r = yearly rate = 0.02

n = number of years. = 5

A = 100 (1+0.02) ^5

A = 100 (1.02) ^5

A = $110.41

Therefore, it's more than $102

Suppose you have 100$ in a savings account earning 2% interest a year. After five years, how much would you have?A. more than $102B. exactly $102C. less than $102D. None of the above

Suppose you have 100$ in a savings account earning 2% interest a year. After five years, how much would you have?

A. more than $102

B. exactly $102

C. less than $102

D. None of the above