4-21. COLLEGE FUND
Five years ago, Gustavo's grandmother put some money in a college savings account for him on his birthday. The account
pays simple interest, and now, after five years, the account is worth $500. Gustavo predicts that if he does not deposit or
withdraw any money, then the account balance will be $1000 five years from now,
a. How do you think Gustavo made his prediction?
b. Do you agree with Gustavo's reasoning? Explain why or why not