https://file.aiquickdraw.com/mathbot/file/1727985880002xp9ub6k0.jpg

This problem involves calculating the future value of an investment with a simple interest rate. The formula to calculate the future value $ A $ after 1 year with a principal $ P $, an interest rate $ r $, and time $ t $ is given by:

\[
A = P(1 + rt)
\]

Where:
- $ P = 3000 $ (initial investment)
- $ r = 7\% = 0.07 $ (annual interest rate)
- $ t = 1 $ year

Substitute the values into the formula:

\[
A = 3000(1 + 0.07 \times 1) = 3000(1.07) = 3210
\]

Thus, the amount in the account after 1 year will be **$3210**.

Would you like more details on how this formula works or have any other questions? 

Here are some related questions to consider:
1. How would the calculation change if the interest was compounded monthly?
2. What would the total be after 5 years instead of 1?
3. How much interest is earned in the first year?
4. How does increasing the principal amount affect the future value?
5. How would you calculate the amount if the rate was variable?

**Tip:** Always check whether the interest is simple or compounded, as it affects the calculation!

A man invests $3,000 in a savings plan that pays 7% per year. How much money will be in the account at the end of 1 year?

Learn how to calculate the future value of a $3000 investment with a 7% annual interest rate over 1 year. This problem applies the simple interest formula: A = P(1 + rt), where P is the principal, r is the interest rate, and t is time. The final amount is $3210.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation