Question

Larry put $900 in a bank that pays a 6% interest rate. If he leaves his interest from the first year in the bank, how much money will he have in total after 2 years

Answer 1

The formula to calculate the amount of money gained after interest with respect to time is the following:

`A=P(1+rt)`

Where "P" is the initial amount, "r" the interest rate in decimal notation, and "t" the time:

Replacing the values:

`A=900(1+(0.06)(2))`

Solving the operations:

`A=1008`

Therefore, after two years Larry will have $1008.