Question

Levi invests money in an account paying a simple interest of 8.7% per year. If he invests $70 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

Pn=Po(1+r)^n

r=8.7%=8.7/100=0.087

Po=$70

n=1

P1=70(1+0.087)^1

=70(1.087)=76.09

=76

Answer 2

Answer:$76.09

Explanation:

100%+8.7%=

108.7%\,\,108.7\%108.7%

Whole balance before interest = 100%, then add on interest

108.7% of the current balance means 108.7100 of it.\text{108.7\% of the current balance means \(\frac{108.7}{100}\) of it.}108.7% of the current balance means 100108.7​ of it.

"Percent" literally means "out of 100."

108.7100=\frac{108.7}{100}=100108.7​=

1.087\,\,1.0871.087

To find 108.7% of the current balance, multiply by 1.087:\text{To find 108.7\% of the current balance, multiply by \(1.087\):}To find 108.7% of the current balance, multiply by 1.087:

$70×1.087=\$70\times1.087=$70×1.087=

$76.09\,\,\boxed{\$76.09}$76.09