Question

Suppose you have $100 in a savings account earning 2 percent interest a year. After five years, would you have more than $102, exactly $102 or less than $102?

Answer 1

I suppose exactly $102 for your answer.

Answer 2

I'm pretty sure it would be more than $102, because 2% of a hundred is $2, and if you get 2% interest a year for 5 years thats 10% which is $10. So that would make it $110, unless I'm doing it wrong. But I think more than would be right.. hope this helps.