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.

Question

Conor Weeks

Mathematics

17 February, 23:47

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.

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Answers (2)

Know the Answer?

Ella Duke · Answer 1

100% or $100,000

Marilyn Holmes · Answer 2

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