Question

You have $ 1 comma 000 and a bank is offering 5.0 % interest on deposits. If you deposit the money in the​ bank, how much will you have in one​ year?

Answer 1

Answer : The amount after 1 year will be, $1050

Explanation :  Given,

Principle = $1000

Time = 1 year

Rate = 5.0 %

Formula used :

$A=P(1+\frac{R}{100})^t$

where,

A = amount

P = principle

R = interest rate

T = time

Now put all the given values in the above formula, we get:

$A=P(1+\frac{R}{100})^t$

$A=\ 1000(1+\frac{5.0}{100})^{1}$

$A=\ 1050$

Therefore, the amount after 1 year will be, $1050