Nick invested $2,000 in a bank savings account today and another $2000 a year from now. If the bank pays interest of 10 percent per year, how much money will Nick have at the end of two years?

Question

Quizplus · Accepted Answer

After one year, the amount invested will have grown by 10% to become 2000 * 1.1 = $2,200. At the end of the second year, both investments will have grown by 10%, so the first investment will be worth 2000 * 1.1 * 1.1 = $2,420, and the second investment will be worth 2000 * 1.1 = $2,200. The total value will be $2,420 + $2,200 = $4,620. Therefore, the best choice is D.

Nick Invested $2,000 in a Bank Savings Account Today and Another