A depositor begins the year with $9,000 in a savings account. The simple annual interest rate is 6%. If no withdrawals or additional deposits are made, how much money will be in the account after one year?

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Multiple Choice

A depositor begins the year with $9,000 in a savings account. The simple annual interest rate is 6%. If no withdrawals or additional deposits are made, how much money will be in the account after one year?

Explanation:
Simple interest means you earn interest only on the original amount each year. With a 6% rate, the interest on 9,000 is 9,000 × 0.06 = 540. Add that to the starting balance: 9,000 + 540 = 9,540. So after one year, the account holds 9,540.

Simple interest means you earn interest only on the original amount each year. With a 6% rate, the interest on 9,000 is 9,000 × 0.06 = 540. Add that to the starting balance: 9,000 + 540 = 9,540. So after one year, the account holds 9,540.

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