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.