Question

Yasmin invests money in an account paying a simple interest of 2.5% per year. If m represents the amount of money she invests, which expression does NOT represent her balance after a year, assuming she makes no additional withdrawals or deposits?
Answer
Multiple Choice Answers
m+0.025m
1.0025m
(1+0.025)m
1.025m

Answer 1

To determine which expression does NOT represent Yasmin's balance after a year with an investment earning simple interest, let's analyze each option.

When Yasmin invests an amount \( m \) at a simple interest rate of \( 2.5\% \) (or \( 0.025 \)), her balance after one year can be calculated using the formula:

\[
\text{Final Balance} = \text{Principal} + \text{Interest}
\]
\[
\text{Final Balance} = m + (0.025 \times m) = m + 0.025m
\]
\[
\text{Final Balance} = 1.025m
\]

Now, we can evaluate each expression provided in the choices:

1. **\( m + 0.025m \)**: This simplifies to \( 1.025m \). This is a valid expression for her balance.

2. **\( 1.0025m \)**: This is not correct because it implies a total that is less than the original investment plus interest earned.

3. **\( (1 + 0.025)m \)**: This simplifies to \( 1.025m \). This is also a valid expression for her balance.

4. **\( 1.025m \)**: This is explicitly the correct formula for her balance, as calculated above.

Thus, the expression that does NOT represent her balance after a year is:

**\( 1.0025m \)**.