Question

Leslie has $80 in a savings account. the interest rate is 5% per year and is not compounded.how much will she have in 1 year?n​

Answer 1

`\$84`

Explanation:

we know that

The simple interest formula is equal to

`A=P(1+rt)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

`t=1\ years\\ P=\$80\\ A=\$?\\r=5\%=5/100=0.05`

substitute in the formula

`A=80(1+0.05*1)`

`A=80(1.05)`

`A=\$84`