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A savings account earns 1.15% interest annually. If $2,100 is deposited in the account, how much money is in the account at the end of one year?

User Toftis
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Final answer:

To calculate the total amount in a savings account after one year at an annual interest rate of 1.15% on a $2,100 deposit, you calculate the simple interest and add it to the principal. The interest is $24.15, and the total amount in the account after one year is $2,124.15.

Step-by-step explanation:

Calculating Simple Interest

The question refers to calculating the amount of money in a saving account that earns a specific annual interest. If $2,100 is deposited in an account with an annual interest rate of 1.15%, the amount of money at the end of one year can be calculated using the formula for simple interest.

The formula for simple interest is:

I = P × r × t

Where I is the interest, P is the principal amount (the initial amount of money), r is the annual interest rate (in decimal form), and t is the time the money is invested (in years).

For this specific example, the calculation would be as follows:

I = $2,100 × 0.0115 × 1 = $24.15

The interest earned at the end of one year is $24.15. To find the total amount in the account after one year, we add the interest to the principal amount:

Total = Principal + Interest

Total = $2,100 + $24.15 = $2,124.15

Therefore, the account will have $2,124.15 at the end of one year.

User Alapan Das
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