Question

If you invest $1,500 today in a bank that gives you a 5 percent annual interest rate, which of these items can you buy in two years?
A.
electronics worth $1,650
B.
fitness equipment worth $1,700
C.
a holiday package worth $2,000

Answer 1

What do you think it is

Answer 2

Amount = initial amount * (1 + interest rate)^time

Amount = 1500 * (1 + 0.05)^2 =