Cameron invests money in an account paying a simple interest of 7% 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 calculate the total balance in an account after one year with simple interest, you can use the formula:

\[ \text{Total Balance} = \text{Principal} \times (1 + \text{Interest Rate}) \]

In this case, the interest rate is 7%, which can be expressed as 0.07 in decimal form. Therefore, the expression becomes:

\[ \text{Total Balance} = \text{Principal} \times (1 + 0.07) = \text{Principal} \times 1.07 \]

To find the total balance in one step, Cameron should multiply his current balance by 1.07.