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Mav invests money in an account paying a simple interest of 7% per year. If no money will be added or removed from the investment, what should she multiply her current balance by to find her total balance in a year in one step

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Mav should multiply her current balance by 1.07 to find her total balance in a year in one step.

Simple interest is calculated using the following formula:

Simple Interest = Principal * Interest Rate * Time

where:

Principal is the amount of money invested

Interest Rate is the percentage of interest earned per year

Time is the number of years the money is invested for

In this case, the Principal is Mav's current balance, the Interest Rate is 7%, and the Time is 1 year.

Therefore, the Simple Interest earned in a year is:

Simple Interest = Principal * 7% * 1 year

Simple Interest = 0.07 * Principal

This means that Mav will earn 7% of her current balance in interest in a year.

Therefore, to find her total balance in a year in one step, she should multiply her current balance by 1 + 7%:

Total Balance = Current Balance * (1 + Interest Rate)

Total Balance = Current Balance * (1 + 0.07)

Total Balance = Current Balance * 1.07

User Martin Hyldahl
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