Question

Marco deposited $500 in a savings account earning 4% interest over 5 years.

What was the total amount of interest earned at the end of 5 years?

A.
$40

B.
$50

C.
$100

D.
$200

Answer 1

Interest = P * R * T / 100
I = 500 * 4 * 5 / 100
I = 10,000 /100
I = 100

In short, Your Answer would be Option C

Hope this helps!

Answer 2

y=500(.96)^5

y=ab^x

a will always be the starting number
b will always be a percent turned to a decimal
x will always be the time

y=500(.96)^5

The answer is around $400

500-400= 100

Answer is C