If you placed $1000 in a savings account today, how much would you have one year from now if the bank paid 8% interest?

Question

Quizplus · Accepted Answer

To calculate the interest earned, we can use the formula: Interest = Principal x Rate x Time, where Principal is the initial amount, Rate is the interest rate, and Time is the duration for which the interest is calculated. Here, Principal = $1000, Rate = 8% = 0.08 (as a decimal), and Time = 1 year. Plugging in these values, we get: Interest = $1000 x 0.08 x 1 = $80. Therefore, the total amount after 1 year will be: $1000 + $80 = $1080.

If You Placed $1000 in a Savings Account Today, How