Adam invests money in an account paying a simple interest of 6% per year. If no money will be added or removed from the investment, what should he multiply his current balance by to find his total balance in a year in one step? Answer:

Question

Adam invests money in an account paying a simple interest of  6% per year. If no money will be added or removed from the investment, what should he multiply his current balance by to find his total balance in a year in one step? Answer:

Bytelearn · Accepted Answer

Calculate Interest Formula: To find the total balance after one year with simple interest, we need to calculate the interest earned and add it to the original balance. The formula for simple interest is: Interest = Principal × Rate × Time Where Principal is the initial amount of money, Rate is the interest rate per period, and Time is the number of periods.Adam's Interest Rate: Adam's interest rate is 6% per year, which can be written as 0.06 in decimal form. Since we are looking for the total balance after one year, Time is 1.Calculate Interest Earned: Using the formula for simple interest, the interest Adam would earn in one year on a principal amount (which we'll call P) is: Interest = P × 0.06 × 1 Interest = 0.06PFind Total Balance: To find the total balance, we add the interest earned to the original principal: Total Balance = Principal + Interest Total Balance = P + 0.06P Total Balance = 1P + 0.06P Total Balance = (1 + 0.06)P Total Balance = 1.06PMultiply by 1.06: Therefore, Adam should multiply his current balance by 1.06 to find his total balance after one year.

Adam invests money in an account paying a simple interest of $6 \%$ per year. If no money will be added or removed from the investment, what should he multiply his current balance by to find his total balance in a year in one step? $\newline$ Answer:

Full solution

More problems from Probability of independent and dependent events

Related topics

Adam invests money in an account paying a simple interest of 6% 6 \% 6% per year. If no money will be added or removed from the investment, what should he multiply his current balance by to find his total balance in a year in one step?\newlineAnswer:

Adam invests money in an account paying a simple interest of $6 \%$ per year. If no money will be added or removed from the investment, what should he multiply his current balance by to find his total balance in a year in one step? $\newline$ Answer: