Question

Isabella deposited $2,000 in an account that earns 5% simple annual interest. After one year, how much interest will her investment earns?

Answer 1

Ans = $2,100
2000 x 1.05= 2100
1.00 = 100%
1.05 = 100% +5%

Answer 2

2100

Explanation:

5% of 2000 = 2000 x 1/20 = 100.

2000+100=2100

Also, if it said how much interest will her investment PAY, then it would be $100 because of the 5% simple interest.