Question

1. $6000 was deposited in a bank, which paid a 3% interest rate per year. what will be the amount in the bank at the end of 9 years?

a $7620
b $16,200
c $4380
d $1620

Explanation:

Step1: Identify the formula for simple interest

The formula for simple interest is $I = P \times r \times t$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal), and $t$ is the time in years. The total amount $A$ is $A = P + I$.

Step2: Convert the interest rate to decimal

The interest rate $r = 3\% = 0.03$.

Step3: Calculate the interest

Substitute $P = 6000$, $r = 0.03$, and $t = 9$ into the interest formula: $I = 6000 \times 0.03 \times 9 = 6000 \times 0.27 = 1620$.

Step4: Calculate the total amount

The total amount $A = P + I = 6000 + 1620 = 7620$.

Answer:

a. $7620$