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William invested $5,000 in an account earning 10 percent for one year. If he had left his investment in that account for another two years, he would expect the total interest earned over the three years to be higher by exactly $1,000.
A. True
B. False

Respuesta :

Answer: False.

Explanation:

At the rate of 10% interest per year on $5000, William would earn:

=> 5000 x 10/100 = $500 a year.

In three years William would earn:

=> 3 x 500 = $1500 in three years.

The interest William would earn in three years is $1500 which is higher than $1000 dollars.

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