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How much interest would $1,000 earn in one year at a rate of 6%, compounded annually? What would be the new balance?

Please, help me!

User Etherealm
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1 Answer

6 votes

Answer:

The investment will generate $ 60 in interest, with which the new balance will be $ 1060.

Explanation:

To determine how much interest would $ 1,000 earn in one year at a rate of 6%, compounded annually, and what would be the new balance, the following calculations must be performed:

1000 x (1 + 0.06 / 1) ^ 1x1 = X

1000 x 1.06 ^ 1 = X

1000 x 1.06 = X

1060 = X

Therefore, the investment will generate $ 60 in interest, with which the new balance will be $ 1060.

User Eric Fulmer
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