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Harry invests $6000 into a savings account. The account pays an annual interest rate of 3.4%. What is the total amount of interest Harry will earn after one year?

1) 204
2) 2040
3) 20400
4) 204000

User Yairopro
by
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1 Answer

4 votes

Final answer:

The total interest Harry will earn after one year on his $6000 deposit with a 3.4% interest rate, use the formula I = P × r × t. The calculation gives an interest of $204 earned in one year.

Step-by-step explanation:

The question asks about the total amount of interest Harry will earn after one year by depositing $6000 in a savings account with an annual interest rate of 3.4%. To calculate the interest earned, you can use the formula I = P × r × t, where I is the interest, P is the principal amount (initial amount of money), r is the annual interest rate (expressed as a decimal), and t is the time in years.

Using this formula:


  • P = $6000 (initial deposit)

  • r = 3.4% per year = 0.034 (expressed as a decimal)

  • t = 1 year

We can calculate the interest as follows:

I = $6000 × 0.034 × 1 = $204

So, the total amount of interest Harry will earn after one year is $204.

User Arjun Kava
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