Question

If $10,000 is invested at a rate of 2 percent for 5 years, how much money is in the account at the end of the term?

$200
$1,000
$10,000
$11,000

Answer 1

Using the simple interest formula: total = start(1 + rate x time)

Total = 10,000 x ( 1 + 0.02 x5)

Total = $11,000

Answer: $11,000