audrey has $90,000 in a savings account that earns 5\\frac{7}{8}\\% annually. the interest is not…

audrey has $90,000 in a savings account that earns 5\\frac{7}{8}\\% annually. the interest is not compounded. how much will she have in total in 1 year? use the formula i = prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.

audrey has $90,000 in a savings account that earns 5\\frac{7}{8}\\% annually. the interest is not compounded. how much will she have in total in 1 year? use the formula i = prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.

Answer

Explanation:

Step1: Convert percentage to decimal

First, convert $5\frac{7}{8}%$ to a decimal. $5\frac{7}{8}=\frac{5\times8 + 7}{8}=\frac{47}{8}=5.875$, so $5\frac{7}{8}%=0.05875$.

Step2: Calculate interest

Use the simple - interest formula $i = prt$. Here, $p = 90000$, $r=0.05875$, and $t = 1$. So $i=90000\times0.05875\times1 = 5287.5$.

Step3: Calculate total amount

The total amount $A=p + i$. Substitute $p = 90000$ and $i = 5287.5$ into the formula. $A=90000+5287.5=95287.5$.

Answer:

$95287.5$