Janelys invests money in an account paying a simple interest of 2.3% per year. If she invests 90 and no money will be added or removed from the investment, how much will she have in one year, in dollars and cents?

Solution

J an e l ys in v es t s m o n ey in an a cco u n t p a y in g a s im pl e in t eres t o f 2.3% p er ye a r . I f s h e in v es t s 90 an d n o m o n ey w i ll b e a dd e d or re m o v e d f ro m t h e in v es t m e n t, h o w m u c h w i ll s h e ha v e in o n e ye a r, in d o ll a rs an d ce n t s ?

Amount : 92.07

Solution steps

Translate the problem into an equation:

A = 90 (1 + 0.023 \cdot 1)

90 (1 + 0.023 \cdot 1) = 92.07

Amount : 92.07