Question

Sam put $1200 into his savings account where she earns 3.5% per year. She leaves the money in the account for 6 years. How much intrest will she earn? How much money will be in the account after 6 years?

Answer 1

$1475.11

Explanation:

Assume compounding once annually. Then:

A = P(1 + r)^t becomes:

A = $1200(1 + 0.035)^6, or

= $1200(1.035)^6, or

= $1475.11