SOLUTION: I dont really understand how to find the balance or what the interest is ? using this formula y = C(1+r)t

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Question 181026This question is from textbook Algebra 1 COncepts and skills
: I dont really understand how to find the balance or what the interest is ?
using this formula y = C(1+r)t This question is from textbook Algebra 1 COncepts and skills

Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
The formula for interest is:
I+=+C%2Ar%2At where
C = principle
r = the rate
t = time
Example:
You invest $1,000 at an annual interest rate of 3%
After 2 years:
I+=+1000%2A.03%2A2
I+=+60
So, you make $60 in interest after 2 years
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You got the formula wrong. It should be:
y+=+C%281+%2B+rt%29
To understand, you should factor it.
y+=+C+%2B+Crt
What this says is:
(Principle + Interest) = (Principle) + (Interest)
The C is principle
The Crt is interest
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Continuing with the example,
You invest $1,000 at an annual interest rate of 3% for 2 years
y+=+C%281+%2B+rt%29
y+=+1000%281+%2B+.03%2A2%29
y+=+1000%281+%2B+.06%29
y+=+1000%2A1.06
y+=+1060
1060 is what you invested + the interest the money earned
after 2 years at 3%