A teacher deposited $3,000 in a retirement fund. If she didn’t add any more money to the fund, which earns an annual interest rate of 6%, how much money would she have in 1 year?
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Detailed Explanation
To determine the amount of interest earned, multiply the principal (3,000) by the interest rate (6%) and the number of years interest accrues (1 year): 3,000 × 0.06 × 1 = 180.
Add the interest earned to the principal to show how much total money the teacher would have: 180 + 3,000 = 3,180.
Add the interest earned to the principal to show how much total money the teacher would have: 180 + 3,000 = 3,180.
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