Question

Anna put $500 into a savings account and made no more deposits or withdrawals. The account earns 2% simple interest per year. How much money will be in the account after 5 years?​

Answer 1

Answer:

$552.04

Step-by-step explanation:

Lauren, use the compound amount formula:  A = P(1 + r)^n.

Here P is the principal and is $500; r is the annual interest rate as a decimal fraction, and n is the number of years.

After 5 years, Anna will have:  $500(1 + 0.02)^5  =  $552.04