Saving Account: A man invests $8,000 in a savings plan that pays 7% per year. How much money will be in the account at the end of 1 year? There will be $ in the account after 1 year.
Saving Account: A man invests $8,000 in a savings plan that pays 7% per year. How much money will be in the account at the end of 1 year? There will be $ in the account after 1 year.
Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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Question
![**Saving Account:** A man invests $8,000 in a savings plan that pays 7% per year. How much money will be in the account at the end of 1 year?
There will be $______ in the account after 1 year.
*Explanation:*
To calculate the amount in the savings account after 1 year, use the formula for simple interest:
\[ \text{Total Amount} = \text{Principal} + (\text{Principal} \times \text{Rate} \times \text{Time}) \]
Where:
- Principal = $8,000
- Rate = 7% or 0.07
- Time = 1 year
\[ \text{Total Amount} = 8000 + (8000 \times 0.07 \times 1) \]
\[ \text{Total Amount} = 8000 + 560 \]
\[ \text{Total Amount} = 8560 \]
Therefore, there will be $8560 in the account after 1 year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faf742b2f-1aad-4724-b315-d374816f2ff1%2F593f487b-4502-4844-aaa9-53ec1a0f88c9%2F46yfsd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Saving Account:** A man invests $8,000 in a savings plan that pays 7% per year. How much money will be in the account at the end of 1 year?
There will be $______ in the account after 1 year.
*Explanation:*
To calculate the amount in the savings account after 1 year, use the formula for simple interest:
\[ \text{Total Amount} = \text{Principal} + (\text{Principal} \times \text{Rate} \times \text{Time}) \]
Where:
- Principal = $8,000
- Rate = 7% or 0.07
- Time = 1 year
\[ \text{Total Amount} = 8000 + (8000 \times 0.07 \times 1) \]
\[ \text{Total Amount} = 8000 + 560 \]
\[ \text{Total Amount} = 8560 \]
Therefore, there will be $8560 in the account after 1 year.
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