Daisy invests $14 000 in a fixed deposit account at a local bank. The interest rate is 1.4% per year. How much money will she have in the account after 1 year?
Question
Daisy invests $14 000 in a fixed deposit account at a local bank. The interest rate is 1.4% per year. How much money will she have in the account after 1 year?
Solution
To calculate the total amount of money Daisy will have in her account after 1 year, we need to calculate the interest she will earn and then add it to her initial investment.
Step 1: Calculate the interest Interest = Principal amount * Interest rate * Time Interest = 196
Step 2: Add the interest to the initial investment Total amount = Initial investment + Interest Total amount = 196 Total amount = $14,196
So, Daisy will have $14,196 in her account after 1 year.
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