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# Suppose that you deposit \$100 into your savings account, which earns 3 percent interest per year.

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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.

Dec 2, 2020

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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 )   Dec 2, 2020
#2
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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

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

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

GAMEMASTERX40  Dec 2, 2020
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GOOD JOB, GM    !!!!!!   Dec 2, 2020
#4
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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....

Dec 2, 2020