Question
Theodore invests \( \$ 11,000 \) at \( 14 \% \) simple interest for 1 year. How much is in the account at the end of the year period? Answer: \( \$ \)
Ask by Tucker Davey. in the United States
Feb 03,2025
Real Tutor Solution
Tutor-Verified Answer
Answer
Theodore has \( \$12,540 \) in his account at the end of the year.
Solution
To calculate the amount in Theodore's account after 1 year with simple interest, you can use the simple interest formula:
\[
\text{Interest} (I) = P \times r \times t
\]
Where:
- \( P = \$11,000 \) (principal amount)
- \( r = 14\% = 0.14 \) (annual interest rate)
- \( t = 1 \) year (time)
**Step 1: Calculate the Interest**
\[
I = 11,000 \times 0.14 \times 1 = \$1,540
\]
**Step 2: Calculate the Total Amount**
\[
\text{Total Amount} (A) = P + I = 11,000 + 1,540 = \$12,540
\]
**Answer:** \( \$12,540 \)
Reviewed and approved by the UpStudy tutoring team
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Simplify this solution The Deep Dive
To find out how much Theodore has at the end of the year, you first calculate the interest using the formula for simple interest: \[ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \] Substituting in Theodore's values: \[ \text{Interest} = 11000 \times 0.14 \times 1 = 1540 \] Now, add the interest to the principal to find the total amount in the account: \[ \text{Total Amount} = \text{Principal} + \text{Interest} = 11000 + 1540 = 12540 \] So, at the end of the year, Theodore will have \( \$ 12,540 \). Thus, the answer is \( \$ 12,540 \).
