Fred invests $15000 in a bank that pays 8% interest per year.
How much interest will he earn from the back at the end of 1 year?
What will be the total balance in his account?
To calculate the interest earned and the total balance after 1 year, we can use the formula for simple interest:
Interest = Principal x Rate x Time
Total Balance = Principal + Interest
In this case, Fred invests $15,000 with an interest rate of 8% per year. Let's calculate the interest earned first:
Interest = $15,000 x 8% x 1
= $15,000 x 0.08
= $1,200
So, Fred will earn $1,200 in interest from the bank at the end of 1 year.
To find the total balance, we can add the interest earned to the initial principal:
Total Balance = $15,000 + $1,200
= $16,200
Therefore, the total balance in Fred's account at the end of 1 year will be $16,200.