Suppose that you deposit $100 into your savings account, which earns 3 percent interest per year. Use what you’ve learned about calculating interest to determine how much money you’ll have in your account at the end of one year and the end of six years.

GAMEMASTERX40 Dec 2, 2020

#1**+3 **

A = P ( 1 + r )^t

P = original amount

r = interest rate expressed as a decimal (.03 in this case)

t =time in years

A = computed amount after t years

See if you can do it now, GM

If you get stuck (or want me to check your answers, let me know )

CPhill Dec 2, 2020

#2**+2 **

*A = P(1 + r) ^{t}*

*P *= original amount

*r* = interest rate expressed as a decimal (0.03 in this case)

*t* = time in years

*A* = computed amount after *t* years

The total amount of money after one year of interest:

*A* = 100(1 + 0.03)^{1}

*A* = 100(1.03)^{1}

*A* = 100(1.03)

*A *= 103

Answer: $103.00

The total amount of money after six years of interest:

*A* = 100(1 + 0.03)^{6}

*A* = 100(1.03)^{6}

*A* = 100(1.19405229653)

*A* = 119.405229653

Answer: $119.41

Thanks for the help CPhill! I'm sure that these answers are correct.

GAMEMASTERX40
Dec 2, 2020

#4**-1 **

Question does not say compounded yearly....which is what was calculated. (Probably what the question was asking)

It COULD be simple interest of 3 % per year and would be

P + P(.03)t where t = years

after 1 year 103

after 6 years 118 Could be either way given questionable wording....

Guest Dec 2, 2020