Answer:
To calculate the interest earned in 1 year, we can use the formula B = p(1 + r)^t, where:
- B is the balance (final amount),
- p is the principal (starting amount),
- r is the interest rate expressed as a decimal, and
- t is the time in years.
In this case, Oscar has $3,000 as the principal, an interest rate of 6% (or 0.06 as a decimal), and a time period of 1 year. Plugging these values into the formula, we get:
B = 3000(1 + 0.06)^1
Simplifying the equation:
B = 3000(1.06)
B = 3180
To find the interest earned, we subtract the principal from the final amount:
Interest = B - p
Interest = 3180 - 3000
Interest = 180
Therefore, Oscar will earn $180 in interest in 1 year.
Step-by-step explanation:
To calculate the interest earned in 1 year, we can use the formula B = p(1 + r)^t, where:
- B is the balance (final amount),
- p is the principal (starting amount),
- r is the interest rate expressed as a decimal, and
- t is the time in years.
In this case, Oscar has $3,000 as the principal, an interest rate of 6% (or 0.06 as a decimal), and a time period of 1 year. Plugging these values into the formula, we get:
B = 3000(1 + 0.06)^1
Simplifying the equation:
B = 3000(1.06)
B = 3180
To find the interest earned, we subtract the principal from the final amount:
Interest = B - p
Interest = 3180 - 3000
Interest = 180
Therefore, Oscar will earn $180 in interest in 1 year.