Question

Money in a particular savings account increases by 6% after a year. How much money will be in the account after one year if the initial amount is $125?

Answer 1

`\begin{gathered} \text{Initial amount}\Rightarrow P=\text{ \$125} \\ \text{Rate}\Rightarrow6\text{ \%} \\ \text{Year}\Rightarrow1year \\ So\text{ the interest is } \\ I=\frac{\text{PRT}}{100} \\ I=(125*6*1)/(100) \\ I=7.5\text{ \$} \\ \text{Amount after 1 year in account} \\ \text{Amount}=P+I \\ \text{Amount}=125+7.5 \\ \text{Amount}=132.5\text{ \$} \end{gathered}`