Question

Theodore invests $7,000 at 6% simple interest for 1 year. How much is in the account at the end of the 1 year period?

Answer 1

Solution:

According to the data of the problem, we get:

Interest = 7000x 0.06 x 1= 420

thus,

Amount at the end of 1 year = 7000 + interest

that is:

Amount at the end of 1 year = 7000 + 420=7420.

So that, the correct solution is:

7420