Question

Lisa has 100 dollars in A savings account. The interest rate is 5% per year and is not compounded. How much interest will she earn in four years?

Answer 1

20 dollars, she will earn this because five percent of one hundred is five, times five by four and you get your answer of twenty!

Answer 2

She would have $20 after 4 years.

Work:

100 x 0.05(5%) = 5

4 x 5 = 20

Hope this helps!