If you invest $1000 today at an interest rate of 6%, you can calculate the amount it will be worth in one year using the formula for simple interest. The formula is:
A = P(1 + r)
Where:
- A is the amount of money accumulated after one year, including interest.
- P is the principal amount (the initial investment).
- r is the interest rate (in decimal).
In this case, the principal (P) is $1000 and the interest rate (r) is 6%, or 0.06 in decimal form. Plugging in the numbers gives:
A = 1000(1 + 0.06)
A = 1000(1.06)
A = $1060
So, if you invest $1000 today at a 6% interest rate, it will be worth $1060 one year from now. This total includes the initial investment and the interest earned over the year.