Hey there! Hello!
For this problem, take the interest equation into account: \(I = Prt\). \(I\) is the interest, \(P\) is the principal amount that will be invested, \(r\) is the rate of interest per year (expressed in decimal form, where 90% is 0.9, for example), and \(t\) is the amount of time. Let's solve the amount of money gained from interest after one year:
\(I = Prt\)
\(I=100*0.02*1\)
\(I=2\)
That means 2 dollars are earned after one year. If $102 is the total after one year, and interest is earned yearly, it surely can't be $102 at the end of five years. So, let's solve for five years this time:
\(I = Prt\)
\(I=100*0.02*5\)
\(I=10\)
So, at the end of five years, $110 will be earned. This is more than $102 dollars, meaning that your first answer choice is the correct one.
Hope this helped you out! Feel free to ask me any additional questions you may have. :-)
