Question

Oscar has $3,000 in an account that earns 6% interest compounded annually. To the nearest cent, how much interest will he earn in 1 year?

Answer 1

well, since the compounding period is annual, so it compounds only once a year, so the earned interest for 1 year is really just 6% of 3000 :|

`\begin{array}ll \cline{1-1} \textit{\textit{\LARGE a}\% of \textit{\LARGE b}}\\ \cline{1-1} \\ \left( \cfrac{\textit{\LARGE a}}{100} \right)\cdot \textit{\LARGE b} \\\\ \cline{1-1} \end{array}~\hspace{5em}\stackrel{\textit{6\% of 3000}}{\left( \cfrac{6}{100} \right)3000}\implies \text{\LARGE 180}`