Question
Ditbert invests \( \$ 20,000 \) at \( 3 \% \) simple interest for 1 year. How much is in the account at the end of the 1 year period? Answer: \( \$ \)
Ask by Martinez Huang. in the United States
Feb 03,2025
Real Tutor Solution
Tutor-Verified Answer
Answer
At the end of 1 year, there is \$20,600 in the account.
Solution
To calculate the amount in Ditbert's account after 1 year with simple interest, you can use the formula:
\[
\text{Total Amount} = P + (P \times r \times t)
\]
Where:
- \( P \) = Principal amount (\$20,000)
- \( r \) = Annual interest rate (3% or 0.03)
- \( t \) = Time in years (1 year)
Plugging in the values:
\[
\text{Interest} = 20,000 \times 0.03 \times 1 = 600
\]
\[
\text{Total Amount} = 20,000 + 600 = 20,600
\]
**Answer:** \$20,600
Reviewed and approved by the UpStudy tutoring team
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Simplify this solution Extra Insights
At the end of one year, Ditbert will earn simple interest calculated using the formula: Interest = Principal × Rate × Time. So, for Ditbert's investment, that’s \( 20,000 \times 0.03 \times 1 = \$600 \). Adding this interest to the initial investment gives us \( 20,000 + 600 = \$20,600 \). So, the total amount in the account at the end of the year is \( \$20,600 \).
