Question

Part 1 of

Ernie Rolph deposits $3050 at 6% for 1 year. How much interest will he earn? What is the account balance at the end of
one year?

Answer 1

`\begin{gathered} Interest\colon\$183 \\ Balance\colon\: \$3233 \end{gathered}`

1) For the first part of this question, let's find how much interest he will earn by the end of 1 year. Let's make use of simple interest formula so that we can find how much interest.

`\begin{gathered} A=P(1+rt) \\ A=3050(1+0.06\cdot1) \\ A=3050(1+0.06) \\ A=3050(1.06) \\ A=3233 \\ i=3233-3050 \\ i=183 \end{gathered}`

2) Hence, this is the answer. The balance $3233 and the earned interest: $183