Question

What is the result of investing 1,000 dollars plus interest? a) 1k plus interest b) 12k plus interest c) Not usually d) $1,000 plus interest

Answer 1

Answer: A

Step-by-step explanation: Simple Interest: A = P(1+rt)

P: the principal, the amount invested

A: the new balance

t: the time

r: the rate, (in decimal form)

Ex1: If $1000 is invested now with simple interest of 8% per year. Find the new amount after two years.

P = $1000, t = 2 years, r = 0.08.

A = 1000(1+0.08(2)) = 1000(1.16) = 1160