A bank offers a 3.7% annual interest rate for a retirement savings account. A worker puts $8,000 into the account. How much will
be in the account after a year?
1 answer:
Answer:
$8,296
Step-by-step explanation:
(see attached for reference)
assuming simple interest, the final amount is given by
A = P(1 + rt), where
A = final amount (we are asked to find this)
P = principal amount = given as $8000
r = rate = 3.7% = 0.037
t = time = 1 year
substituting the known values into the formula,
A = P(1 + rt)
= 8,000 [ 1 + (0.037)(1) ]
= $8,296
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