A teacher deposits $3,000 in a retirement fund. If she doesn'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?

$3,180 right? For those problems I do (3,000*0.06*1)/100... is that formula right?

Question

A teacher deposits $3,000 in a retirement fund. If she doesn'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?

$3,180 right? For those problems I do (3,000*0.06*1)/100... is that formula right?

anonymous · Answer

$$3000\times (1.06)$$ will do it

anonymous · Answer

It depends on whether you are computing simple or compound interest. since the problem doesn't specify you could just use simple. Simple interest would work either way though because the interest is only computed once and not on any new amounts