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

@SolomonZelman

Answer 2

This is complex (not simple,) interest correct ?

Answer 3

I mean compound interest

Answer 4

For compound interest

\(\Large\color{black}{ \rm A=P(1+ \frac{r}{n})^{nt} }\)

A is the final amount after the investment
P is the initial amount
r is the rate in decimal, like if it is 4% then you say 0.04
n is the number of times the interest compound EACH YEAR
t is the number of years.

Answer 5

Go for it.

Answer 6

C 100

Answer 7

I don't have a calculator, but if you plugged everything correctly, and didn't make any rush errors, then it is correct.