Anand invests money in an account paying a simple interest of 1% per year. If no money will be added or removed from the investment, what should he multiply his current balance by to find his total balance in a year in one step?

Answer 1

To find Anand's total balance in the account after one year with a simple interest rate of 1%, you can determine the total amount by multiplying his current balance by the sum of 1 and the interest rate in decimal form.

The current balance can be represented as \( P \). The simple interest earned in one year at a rate of 1% would be \( 0.01P \).

Therefore, the total balance after one year would be:

\[ \text{Total Balance} = P + 0.01P = P(1 + 0.01) = P \times 1.01 \]

Thus, to find his total balance in one step after one year, Anand should multiply his current balance by 1.01.