Question

Suppose you deposit $1,500.00 into your savings account that pays you 25.00% interest. After one year, you will have $ in your account (round your answer to two decimal places).

Answer 1

the amount after the one year is $1,875

Step-by-step explanation:

The computation of the amount after the one year is shown below;

As we know that

Future value = Present value × (1 + rate of interest)^number of years

= $1,500 × (1 + 0.25)^1

= $1,500 × 1.25

= $1,875

Hence, the amount after the one year is $1,875

It could be determined by applying the above formula