Question

If you put $100 in a savings account with an interest rate of 2% per year and left the money in the account for five years, how much money would be in the account after five years?

Answer 1

$510

Explanation:

Formula for calculating money with simple interest: principle money × interest rate with 100% × period of time

Total amount of money = 100 ×
`(100+2)/(100)` × 5

= 510