Question

If $400 is invested at the rate of 6% for one year, what will be the total value of the investment (the amount)?


$42.40
$424.00
$4,240.00


Okay. I don't know where to start to solve this question so I need like a step by step help

Answer 1

Right, you deposit 400, at 6% interest, aye?

Answer 2

So after a year, it earns 6% of itself...
it's like discount, only instead of subtracting, you add...

Answer 3

So, what is 6% of 400?

Answer 4

mhm right.

Answer 5

24

Answer 6

That's right :)
So after a year, your 400 earns 24 more... so your total is now...?

Answer 7

Still there?

Answer 8

hold on

Answer 9

424

Answer 10

ahh, there we go :D