Liz deposited $1,200 in a savings account that paid 5 1/2% annually. How mucg would Liz have in her account after 1 year?
1,200 + (1,200 * 0.055) = $_______
1,200 + (1,200 * 0.055) =1266
Correct.
Thank you very much.
To calculate how much Liz would have in her account after 1 year, you need to determine the amount of interest earned on the deposited amount and add it to the initial deposit.
Step 1: Convert the interest rate from a mixed number to a decimal.
5 1/2% can be written as 5.5%, which, in decimal form, is 0.055.
Step 2: Calculate the interest earned.
Interest = Initial Deposit * Interest Rate
Interest = $1,200 * 0.055
Interest = $66
Step 3: Add the interest earned to the initial deposit to find the total amount after 1 year.
Total Amount = Initial Deposit + Interest
Total Amount = $1,200 + $66
Total Amount = $1,266
Therefore, Liz would have $1,266 in her account after 1 year.