Julia deposits $900 in a savings certificate that pays 6.5 % annually. How much money will Julia have at the end of one year?
900 * 1.065 = ?
To calculate how much money Julia will have at the end of one year, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount of money Julia will have
P = the principal amount, which is $900
r = the annual interest rate, which is 6.5% or 0.065 as a decimal
n = the number of times interest is compounded per year (we'll assume it's compounded annually)
t = the number of years, which is 1
Plugging in these values into the formula, we get:
A = 900(1 + 0.065/1)^(1*1)
A = 900(1 + 0.065)^1
A = 900(1.065)
A = $956.50
Therefore, Julia will have $956.50 at the end of one year.