victoria invests money in an account paying a simple interest of 7.2% per year. if she invests $20 and no…
victoria invests money in an account paying a simple interest of 7.2% 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 the simple - 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=$20$, $r = 7.2%=0.072$, and $t = 1$ year. So, $I=20\times0.072\times1$. $I = 20\times0.072=1.44$
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, $A=P + I$. $A=20 + 1.44=21.44$
Answer:
$21.44$