Question

If $10,000 is invested at a rate of 2.5 percent for 5 years, how much money is in the account at the end of the term?

Answer 1

Your answer would be $400,000 or 400 thousand dollars.

The reason is, $10,000 is at a rate of 2.5 percent for 5 years, and so the percentage needs to multiply by 40 to get to 100%, (The full investment) so 40 needs to multiply by $10,000 for your answer. Thank you and hope this helps.

Answer 2

10,000(1 + .025 x 5)
11,250