Answer:
After 5 years, Fred will have $1,100
Step-by-step explanation:
Simple interest = PRT/100
Where p=principal R =rate and T =time (in year)
In the first year,
p=1000 R = 2% T=1
Interest = PRT/100
=$1000 × 2×1 / 100
= $2000/100
=$20
In year 2,
p=$1020 R=2% T =1
Interest = PRT/100
=$1020 × 2×1 / 100
= $2040/100
=$20.4
In year 3,
p=$1040.4 R=2% T =1
Interest = PRT/100
=$1040.4 × 2×1 / 100
= $2080.8/100
=$20.808
In year 4,
p=$1061.208 R=2% T =1
Interest = PRT/100
=$1061.208 × 2×1 / 100
= $2122.416/100
=$21.224
In year 5,
p=$1082.432 R=2% T =1
Interest = PRT/100
=$1082.432 × 2×1 / 100
= $2164.864/100
=$21.649
Amount= $1082.432 + $21.649
=$1,104.081
≈$1100
After 5 years, Fred will have $1,100
