Chris opens a bank account and deposits $1000 into it - HSC - SSCE Mathematics Standard - Question 3 - 2019 - Paper 1

To find the balance at the end of the first year, we use the formula for compound interest:

$A = P(1 + r)^t$

Where:

• $A$ is the amount of money accumulated after n years, including interest.
• $P$ is the principal amount (the initial deposit, which is $1000).
• $r$ is the annual interest rate (decimal).
• $t$ is the number of years the money is invested or borrowed.

For the first year:

• $P = 1000$
• $r = 0.035$
• $t = 1$

Substituting in the values: $A = 1000(1 + 0.035)^1 = 1000(1.035) = 1035$

So, the balance after the first year is $1035.00.