Final answer:
Lori will have a new balance of $412.62 in her savings account after the first year, having earned 5.8% interest on her $390 deposit.
Step-by-step explanation:
When Lori deposited $390 into a savings account with an annual interest rate of 5.8%, we can calculate her new balance after the first year using the formula for simple interest, which is A = P(1 + rt). Here, A represents the amount of money accumulated after n years, including interest. P is the principal amount (the initial amount of money), r is the annual interest rate (as a decimal), and t is the time in years.
Applying the values, we get:
- P = $390
- r = 5.8/100 = 0.058 (converting percentage to a decimal)
- t = 1 year
The new balance A can be calculated as follows:
A = $390(1 + 0.058 × 1)
A = $390(1 + 0.058)
A = $390 × 1.058
A = $412.62
Lori's new balance after the first year will be $412.62.