Question

Brayden invests money in an account paying a simple interest of 3.3% per year. If he invests $30 and no money will be added or removed from the investment, how much will he have in one year, in dollars and cents?

Answer 1

The answer is $29.01

Answer 2

$30.99

Explanation:

The formula for simple interest is I = PRT where I = interest earned, P = principal amount borrowed/deposited, R = rate as a decimal, and T = time in years.

I = (30)(0.033)(1)

I = 0.99

Then add that to the amount deposited ($30) and you're done.

30 + 0.99 = $30.99

Please let me know if you have questions.