Question

Melanie invests money in an account paying a simple interest of 6. 2% 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?​

Answer 1

P(1.062)

Explanation:

According to the given information

Melanie invests her money into an account that pays simple interest.

And the simple interest rate = 6.2%

So we can write = 6.2% = 6.2/100 = 0.062

So the rate is 0.062

Now let us assume the invested money is $P

now the maturity after one year with simple interest = P + (P x r x t)

principal amount = P

rate of interest r = 0.062

time in years t = 1

so the matured value = P + (P x 0.062 x 1)

so the matured value = P + (0.062P)

so the matured value = P[1 + 0.062 ]

matured value = 1.062(P)

So in on step, we can write the matured value with simple interest = principal x (1 + (r/100))

so r = 6.2%

So, the answer is P(1.062)