Final answer:
Gordon has $900 at 10% interest for 1 year. Using the simple interest formula, we add the interest earned ($90) to the initial amount, resulting in a total of $990 after 1 year.
Step-by-step explanation:
The student asked: Gordon has $900 in a savings account that earns 10% interest. How much will he have in total in 1 year?
To answer this, we need to calculate the amount of money Gordon will have after one year with the given interest rate. Since the interest is earned on the initial amount, we can use the simple interest formula:
- Total Amount = Principal + (Principal × Interest Rate × Time)
In Gordon's case:
- Principal (the initial amount) = $900
- Interest Rate = 10% or 0.1 (when converted to a decimal)
- Time = 1 year
Using the formula:
- Total Amount = $900 + ($900 × 0.1 × 1)
- Total Amount = $900 + $90
- Total Amount = $990
Therefore, Gordon will have $990 in total in his savings account after 1 year.