Question

A retiree invests $6,000 in a savings plan that pays 6% per year. What will the account balance be at the end of the first year?

Answer 1

To find the account balance at the end of the first year, we need to calculate the amount of interest earned. The interest rate is 6%, or 0.06. The initial balance is $6,000, so the interest earned is 0.06*$6,000 = $360.

Adding the interest to the initial balance gives us the account balance at the end of the first year: $6,000 + $360 = $<<6000+360=6360>>6360.

Therefore, the account balance at the end of the first year will be $6360.