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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?

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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 = 14,0001.4/1001Interest=14,000 * 1.4/100 * 1 Interest = 196

Step 2: Add the interest to the initial investment Total amount = Initial investment + Interest Total amount = 14,000+14,000 + 196 Total amount = $14,196

So, Daisy will have $14,196 in her account after 1 year.

This problem has been solved

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