Question

Dorothy opens a savings account with $80 that earns 8.5% interest

Answer 1

Answer:

$86.8

Step-by-step explanation:

Given that,

Principal, P = $80

Rate of interest, R = 8.5%

We need to find the money he will have in 1 year. As the interest is not compounded, it must be simple interest. The simple interest can be calculated by the formula,

$I=\dfrac{PRT}{100}\\\\I=\dfrac{80\times 8.5\times 1}{100}\\\\=\ 6.8$

We know that,

Amount = Principal + interest

= $80 + $6.8

= $86.8

Hence, the amount will become $86.8.