Question

Arianys invests money in an account paying a simple interest of 3% per year. If m

represents the amount of money she invests, which expression represents her balance
after a year, assuming she makes no additional withdrawals or deposits?

Answer 1

Explanation:

The balance of an account after a year, when the interest rate is 3% per year and there are no additional withdrawals or deposits, can be represented by the formula:

Balance = Principal + Interest

where Principal is the initial amount of money invested (m) and Interest is the interest earned on that amount for the year.

Interest is calculated as the product of the principal, the interest rate, and the time period. In this case, the interest rate is 3% (or 0.03), and the time period is one year. Therefore the Interest can be represented by the following expression:

Interest = Principal * Interest Rate * Time

Substituting the given values:

Interest = m * 0.03 * 1

So the expression that represents Arianys balance after a year is:

Balance = m + (m*0.03)

= m + 0.03m

= 1.03m

This expression represents her balance after a year, assuming she makes no additional withdrawals or deposits.