Question

My grandmother put $1,000 in a savings account in 1935 with a fixed annual interest of 2% per year, then left the account alone with compound interest, the savings account balance in 2005 reached: Select one:

a. $2000
b. $1,000
c. $1,500
d. $4000

Answer 1

$1,000(1.02^70) = about $4,000

The correct answer is D.