Question

Chris invests $17,000 at 6% simple interest for 1 year. How much is in the account at the end of the 1-year period?

a) $17,000
b) $17,180
c) $17,360
d) $18,020

Answer 1

The correct answer is d. To calculate the amount in the account at the end of the 1-year period, you can use the simple interest formula: Interest = Principal * Rate * Time. Adding the interest to the principal gives us the total amount in the account.

Step-by-step explanation:

To calculate the amount in the account at the end of the 1-year period, we can use the simple interest formula:

Interest = Principal * Rate * Time

Plugging in the given values:

Interest = $17,000 * 0.06 * 1 = $1,020

Adding the interest to the principal, the total amount in the account at the end of the 1-year period is:

Total = Principal + Interest = $17,000 + $1,020 = $18,020