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...

My real question is - Is the formula I can use every time?

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... 

My real question is - Is the formula I can use every time?

anonymous · Answer

That*

anonymous · Answer

What you're looking for is a compound interest formula: http://en.wikipedia.org/wiki/Compound_interest#Compound In your case, you are compounding over just one year (t=1).