Question

Peter inherits 15.000 dollars and place money with a bank. The interest rate are 3 percent. How many money will he get after 1year?

Answer 1

The simplest form of an interest equation is A = P(1+rt)

where A = the total amount of money at the end, P = the principal (or amount of money you started with), r = the rate in percent, and t = the time in years.

In this case, P = 15000, r = 0.03 (because 3% in decimal form is 0.03), and t = 1:

$A=P(1+rt)\\A=15000(1+0.03*1)\\A=15000(1+0.03)\\A=15000(1.03)\\A=15450$

So, after 1 year he will get $15450 back, making him $450 more.