SOLUTION: A retiree invests $9,000 in a savings plan that pays 6% per year. What will the account balance be at the end of the first year?

Question 1124933: A retiree invests $9,000 in a savings plan that pays 6% per year. What will the account balance be at the end of the first year?

Found 2 solutions by Theo, greenestamps:
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
9000 * 1.06 = 9540.

that's what's in the account at the end of the first year.

the 1.06 factor is derived as follows:

6% = .06

6% of 9000 = .06 * 9000.

9000 + .06 * 9000 is your expression.

factor out the 9000 to get 9000 * (1 + .06) which becomes 9000 * 1.06.

the result is 9540.

the principal is 9000.

the interest is 540 which is equal to .06 * 9000.

Answer by greenestamps(13203) (Show Source): You can put this solution on YOUR website!

$9000, plus 6% of the $9000.

Or...
Mathematically, it is easier to do the calculation as

RELATED QUESTIONS
A retiree invests $3,000 in a savings plan that pays 6% per year. What will the account... (answered by rfer)
1) A retiree invests $3,000 in a savings plan that pays 3% per year. What will the... (answered by rfer)
1)A retiree invests $7,000 in a savings plan that pays 3% per year. What will the account (answered by ikleyn)
4. You are planning to deposit $15,000 into a bank account at the end of each year for 5... (answered by Theo)
Bryan invests $4000 in a savings account that pays 5% compounded annually. How much will... (answered by checkley77)
Saving Account: A woman invests $987.40 in a savings account that pays 4.75% annually.... (answered by solver91311)
Andrew invests $8000 in two types of accounts: a savings account that pays 5.25%... (answered by macston)
Ms. White invests $2,000 in a saving plan. The savings account pays an annual interest... (answered by ikleyn)
A bank pays 3% compound interest per year. Jeremy invests $2 000. How much money will he... (answered by Cromlix)