Question

Nathaniel invests money in an account paying a simple interest of 6% per year. If he invests $90 and no money will be added or removed from the investment, how much will he have in one year, in dollars and cents?

Answer 1

95.40 total and 5.40 in intreset

Explanation:

Answer:

A = $95.40

I = A - P = $5.40

Equation:

A = P(1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 6%/100 = 0.06 per year.

Solving our equation:

A = 90(1 + (0.06 × 1)) = 95.4

A = $95.40

The total amount accrued, principal plus interest, from simple interest on a principal of $90.00 at a rate of 6% per year for 1 years is $95.40.