Question

After several years of working, Katy has savings of $100,000. If she invests that $100,000 in a savings fund that adds 5% each year, about how much will her savings account have after 20 years? Ignore compounding and taxes, and assume Katy puts no additional money into savings.

Answer 1

Answer

$200,000

Step-by-step explanation:

She invested $100,000

5% of $100,000 is $5,000.

After 20 years, (5,000 X 20 years) = $100,000

Starting balance of $100,000 + $100,000 = $200,000