Question

Imagine you put $100 in a savings account with a yearly interest rate of 6%. After one year, you have

A. 106
B. 6
C. 200
D. 206

Answer 1

To calculate the amount of money you will have after one year with a 6% interest rate, use the formula Final Amount = Initial Amount + (Initial Amount * Interest Rate). After substituting in the given values, the final amount is $106.

Step-by-step explanation:

To calculate the amount of money you will have after one year with a 6% interest rate, you can use the formula:

Final Amount = Initial Amount + (Initial Amount * Interest Rate)

Substituting in the given values:

Final Amount = $100 + ($100 * 0.06)

Final Amount = $100 + $6 = $106

Therefore, after one year, you will have $106 in your savings account. The correct answer is option A.