Question

Money in a particular savings account increases by about 6% after a year.How much money will be in the account after one year if the initial amount is $100 $50 $200 $125 x dollar?

Answer 1

Part 1)
`\$106`

Part 2)
`\$53`

Part 3)
`\$212`

Part 4)
`\$132.50`

Part 5)
`\$1.06x`

Explanation:

we have

Money in a particular savings account increases by about 6% after a year.

we know that

The simple interest formula is equal to

`A=P(1+rt)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

Part 1) How much money will be in the account after one year if the initial amount is $100

in this problem we have

`t=1\ year\\ P=\$100\\ A=?\\r=6\%=6/100=0.06`

substitute in the formula above

`A=100(1+0.06*1)`

`A=100(1.06)`

`A=\$106`

Part 2) How much money will be in the account after one year if the initial amount is $50

in this problem we have

`t=1\ year\\ P=\$50\\ A=?\\r=6\%=6/100=0.06`

substitute in the formula above

`A=50(1+0.06*1)`

`A=50(1.06)`

`A=\$53`

Part 3) How much money will be in the account after one year if the initial amount is $200

in this problem we have

`t=1\ year\\ P=\$200\\ A=?\\r=6\%=6/100=0.06`

substitute in the formula above

`A=200(1+0.06*1)`

`A=200(1.06)`

`A=\$212`

Part 4) How much money will be in the account after one year if the initial amount is $125

in this problem we have

`t=1\ year\\ P=\$125\\ A=?\\r=6\%=6/100=0.06`

substitute in the formula above

`A=125(1+0.06*1)`

`A=125(1.06)`

`A=\$132.50`

Part 5) How much money will be in the account after one year if the initial amount is $x

in this problem we have

`t=1\ year\\ P=\$x\\ A=?\\r=6\%=6/100=0.06`

substitute in the formula above

`A=x(1+0.06*1)`

`A=x(1.06)`

`A=\$1.06x`