Question

You have $ 1 comma 000 and a bank is offering 5.0 % interest on deposits. If you deposit the money in the​ bank, how much will you have in one​ year?

Answer 1

Answer : The amount after 1 year will be, $1050

Explanation : Given,

Principle = $1000

Time = 1 year

Rate = 5.0 %

Formula used :

`A=P(1+(R)/(100))^t`

where,

A = amount

P = principle

R = interest rate

T = time

Now put all the given values in the above formula, we get:

`A=P(1+(R)/(100))^t`

`A=\$ 1000(1+(5.0)/(100))^(1)`

`A=\$ 1050`

Therefore, the amount after 1 year will be, $1050