Question

greg invests 500$ in a savings account that earns 4% simple interest annually. if he does not make any additional deposits or withdrawals, how much money will be in the savings account after 5 years?

Answer 1

Greg will earn $100 dollars

Answer 2

The answer is 100.

Explanation:

4% of $500 is $20. If Greg collects $20 each year 5 times in a row, he will have earned $100.