Bryan deposited $1,000 in a savings account earning 6% interest, compounded annually.

Question

Algebra 1

exponential word problems 

 

Answer 1

Hello Brian,

To solve this problem you only need to remember a few things: 

First: You need the formula I presume since it is Algebra I 

Second: You need to know what each symbol stands for in the formula, right? 

So, here is the formula: 

A = P (1 + r/n) ^n*t   

A = total amount 
P = Principal of amount deposited 
r = annual rate of interest 
n = number of times compounded 
t = time in years 

In the problem you were given: 

P = 1000  r = 6% n = 1 (compounded annually) t = 1 (assuming the problem is asking how much money will accumulate after 1 year. If this number is different than 1 year and you did not share that part, just plug in the correct number)

Once we plug in the information, we have: 

A = 1000(1 + 0.06/1) ^ 1*1 

Solve the problem with BODMAS procedure: 

B = brackets, O = Powers. D = Division, M = Multiplication A = Addition, S = Subtraction 

Therefore: 

A = 1000 (1 + .06) ^ 1*1
A = 1000 (1.06)^1*1
A = 1000 (1.06) ^1
A = 1000 (1.06)
A= $1,060

Again: I am ASSUMING the number of years to be ONE because no other information was provided in the problem. If this was by accident, simply substitute the 1 in the powers portion of the equation for the correct number of years. 

I hope I have helped you this morning. Have a great day.