Question

Camila invests money in an account paying a simple interest of 3.4% per year. If she invests $50 and no money will be added or removed from the investment, how much will she have in one year, in dollars and cents?

Answer 1

After investing $50 and waiting 1 year she would have gained $1.70.

Answer 2

51.70

Explanation:

2 ways to calculate

50 x 1.034=51.70

or

50 x .034=1.70 interest

1.70 interest

Plus 50.00 principal

equals 51.70