amelia invests money in an account paying a simple interest of 2.1% per year. if she invests $130 and no…
amelia invests money in an account paying a simple interest of 2.1% per year. if she invests $130 and no money will be added or removed from the investment, how much will she have in one year, in dollars and cents?
Answer
Explanation:
Step1: Calculate the interest amount
The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Here, $P=$130$, $r = 0.021$ (since $2.1%=0.021$), and $t = 1$ year. So, $I=Prt=130\times0.021\times1$. $I = 130\times0.021=2.73$.
Step2: Calculate the total amount
The total amount $A$ in the account after $t$ years is given by $A=P + I$. We know $P = 130$ and $I = 2.73$. So, $A=130 + 2.73$. $A=132.73$.
Answer:
$132.73$