Question

Find the amount after one year on $1,000 invested at 6% per year if interest is simple interest

Answer 1

The amount after 1 year is $ 1060 .

Explanation:

The amount after 1 year on $1,000 invested at 6% per year on simple interest

is given by,

$
`1000 * (1 + (6)/(100))`

= $ (1000 + 60)

= $ 1060

We know that, if,

Principal = P unit

Rate of annual simple interest = R%

Time = T year

then, amount, A =
`(P *( 1 + \frac {R * T}{100}))` unit