Sam invests $6000 in an account that pays interest of 4.5% per year. a) How much interest would he earn each year?

b) How much would he have in his account at the end of the first year?

He would earn an interest of $270 each year and at the end of the first year he would have $6270 in his account.

Step-by-step explanation:

Step 1: Given details are Principal Amount (P) = $6000, Rate of Interest (R) = 4.5% and time (T) = 1 year Step 2: Calculate simple interest by using the formula SI = PRT/100

⇒ SI = 6000 * 4.5 * 1/100

⇒ SI = 60 * 4.5 = $270

Step 3: Calculate the amount he would receive at the end of an year by using the formula, A = P + SI

⇒ A = 6000 + 270

⇒ A = $6270