SOLUTION: Aldo put $400 into a savings account that paid an interest of 5.4% per year. What is the total amount in his account at the end of 1 year?

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Question 973186: Aldo put $400 into a savings account that paid an interest of 5.4% per year. What is the total amount in his account at the end of 1 year?
Answer by farohw(175) About Me  (Show Source):
You can put this solution on YOUR website!
To find the amount we use the formula A = P(1 + rt) where
P is the Principal = $400
r is the interest rate 5.4% or 5.4/100 = 0.054 per year
and of course t is time = 1 year
Therefore, A = 400(1 + 0.054(1)) = $421.60
and this is the total amount he will have at the end of one year.