Andres invests money in an account paying a simple interest of 6.8% per year. If m represents the amount of money he invests, which expression represents his balance after a year, assuming he makes no additional withdrawals or deposits? 1+0.068 1.0068 m 1.068 m 1+0.068 m

Question

Andres invests money in an account paying a simple interest of  6.8% per year. If  m represents the amount of money he invests, which expression represents his balance after a year, assuming he makes no additional withdrawals or deposits?  1+0.068  1.0068 m  1.068 m  1+0.068 m

Bytelearn · Accepted Answer

Understand simple interest: Understand the concept of simple interest. Simple interest is calculated by multiplying the principal amount (the initial amount of money) by the interest rate and by the time the money is invested. Interest = Principal × Rate × Time Since the time is 1 year, the formula simplifies to: Interest = Principal × RateConvert interest rate to decimal: Convert the interest rate from a percentage to a decimal. The interest rate given is 6.8%, which as a decimal is 0.068.Apply simple interest formula: Apply the simple interest formula to find the interest earned after one year. Interest = m × 0.068Calculate total balance: Calculate the total balance after one year. The total balance is the sum of the initial investment (principal) and the interest earned. Balance after one year = Principal + Interest Balance after one year = m + (m × 0.068)Factor out common factor: Factor out the common factor m from the expression. Balance after one year = m (1 + 0.068)Simplify expression: Simplify the expression. Balance after one year = m (1.068) This is the expression that represents Andres's balance after a year with simple interest of 6.8%.

Full solution

More problems from Compound interest

Related topics