QUIZ: Can We Guess Your Education Level?

If you have $100 in a savings account earning 2 percent compound interest a year, how much will you have after five years?

Retry Correct Incorrect If you invest $100 at 2 percent, after one year you’ll earn $2 in interest. After one year you have $102, so the 2 percent interest will be applied to $102, not $100, so for year two you’ll earn $2.04. This means that after five years, you’ll have $110.41.

Next

Igor Golovniov/SOPA Images/LightRocket via Getty Images

Igor Golovniov/SOPA Images/LightRocket via Getty Images

If you have $100 in a savings account earning 2 percent compound interest a year, how much will you have after five years?

• $110.41
• $12.00
• $10.00
• $102.00