Question

Greg put $1,000 into an investment that had 6% annual interest. The money is left in the account for 2 years. How much interest do you get at the end of those 2 years?

Answer 1

Explanation:

Okay so first you are going to take 6% or 0.06 of 1000. Add the number you get to 1000.

0.06*1000 = 60

60+1000 = 1060

You are going to do the same thing, but with 1060.

0.06*1060 = 63.6

63.6+1060 = 1123.6

Then take 1123.6 and subtract the original 1000.

You will get 123.60. That is the amount of interest you have gained over the 2 years.