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4 June, 04:18

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

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  1. 4 June, 07:16
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    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
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