arianna invests money in an account paying a simple interest of 2% per year. if she invests $20 and no money…
arianna invests money in an account paying a simple interest of 2% per year. if she invests $20 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 simple - interest amount
The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the interest rate (in decimal form), and $t$ is the time in years. Here, $P=$20$, $r = 0.02$ (since $2%=0.02$), and $t = 1$ year. So, $I=Prt=20\times0.02\times1 = 0.4$.
Step2: Calculate the total amount
The total amount $A$ in the account after $t$ years is the sum of the principal $P$ and the interest $I$. So, $A=P + I=20+0.4=$20.40$.
Answer:
$20.40$