Josiah invests $360 into an account that accrues 3% annual interest.
Mathematics · Middle School · Wed Jan 13 2021
Answered on
To calculate the amount of money Josiah will have in the account after one year with an annual interest rate of 3%, we use the formula for simple interest, which is:
\( I = Prt \)
where: - \( I \) is the interest earned - \( P \) is the principal amount (initial amount of money) - \( r \) is the annual interest rate (in decimal form) - \( t \) is the time the money is invested for, in years
For Josiah's investment: - \( P = $360 \) - \( r = 3\% = 0.03 \) (you convert the percentage into a decimal by dividing by 100) - \( t = 1 \) year
Now, substitute the values into the formula:
\( I = 360 \times 0.03 \times 1 \)
\( I = 360 \times 0.03 \)
\( I = $10.80 \)
So Josiah will earn $10.80 in interest after one year.
To find the total amount of money in the account after one year, you add the interest earned to the principal amount:
Total amount = Principal + Interest Total amount = $360 + $10.80 Total amount = $370.80
After one year, Josiah will have $370.80 in the account.