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?

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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