Ahmad deposits $1500 in a bank that offers an interest of 2 percent per year. How much will Ahmsd have altogether at the end of one year?

Answer 1

To determine the total amount Ahmad will have at the end of one year, we need to calculate the interest earned on the initial deposit.

Interest = Principal * Rate * Time

Given that the principal (initial deposit) is $1500 and the rate is 2 percent (which is equivalent to 0.02), and the time is 1 year, we can calculate the interest as follows:

Interest = $1500 * 0.02 * 1 = $30

Therefore, Ahmad will have an additional $30 in interest at the end of one year.

The total amount Ahmad will have altogether at the end of one year is the sum of the initial deposit and the interest earned:

Total amount = Initial deposit + Interest
Total amount = $1500 + $30 = $1530

Therefore, Ahmad will have $1530 altogether at the end of one year.