engineering intelligence MCQ #243

A person invests 1000 at a 5% annual interest rate. How much will they have after 2 years?

engineering intelligence MCQ #243

  1. Question 1

    Q1. A person invests 1000 at a 5% annual interest rate. How much will they have after 2 years?

    • A) 1102.5
    • B) 1100
    • C) 1105
    • D) 1090

    Answer: 1102.5

    Explanation: After 1st year, amount = 1000 + 1000 * 0.05 = 1050. After 2nd year, amount = 1050 + 1050 * 0.05 = 1102.5.