Question

Zendaya invests money in an account paying a simple interest of 7.3% per year. If she invests $70 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

To calculate the total amount Zendaya will have after one year with simple interest, we can use the formula for simple interest:

\[
I = P \times r \times t
\]

where:
- \(I\) is the interest earned,
- \(P\) is the principal amount (the initial investment),
- \(r\) is the interest rate (as a decimal),
- \(t\) is the time in years.

Given:
- \(P = 70\) dollars,
- \(r = 7.3\% = 0.073\),
- \(t = 1\) year.

Now, plug the values into the formula to calculate the interest:

\[
I = 70 \times 0.073 \times 1
\]
\[
I = 70 \times 0.073
\]
\[
I = 5.11
\]

Now, to find the total amount she will have in one year, we add the interest to the principal:

\[
\text{Total Amount} = P + I
\]
\[
\text{Total Amount} = 70 + 5.11
\]
\[
\text{Total Amount} = 75.11
\]

So, after one year, Zendaya will have **$75.11**.