Mr Srinivasan invests $55 000 in a fixed deposit account. The interest rate is 3.3 % per year. How much money will he have in the account after 1 year?
what is 55 000 + 55 000(.033)(1) ?
To calculate the amount of money Mr. Srinivasan will have in the account after 1 year, we need to consider the principal amount (the initial investment) and the interest earned.
The formula to calculate simple interest is:
Simple Interest = Principal × Interest Rate × Time
Where:
Principal = $55,000 (the initial investment)
Interest Rate = 3.3% per year (converted to decimal form, it is 0.033)
Time = 1 year
Let's calculate the interest earned first:
Interest = Principal × Interest Rate × Time
= $55,000 × 0.033 × 1
= $1,815
Now, to find the total amount in the account after 1 year, we need to add the interest earned to the principal amount:
Total Amount = Principal + Interest
= $55,000 + $1,815
= $56,815
Therefore, Mr. Srinivasan will have $56,815 in the account after 1 year.