Question

bella invests money in an account paying a simple interest of 4% per year. if no money will be added or removed from the investment, what should she multiply her current balance by to find her total balance in a year in one step?

Explanation:

Step1: Recall Simple Interest Formula

The formula for simple interest is $I = P \times r \times t$, where $P$ is principal (current balance), $r$ is rate (in decimal), and $t$ is time. The total balance $A$ after time $t$ is $A = P + I = P(1 + rt)$.

Step2: Substitute Values for t=1 and r=4%

Given $t = 1$ year and $r = 4\% = 0.04$. Substitute into $A = P(1 + rt)$: $A = P(1 + 0.04 \times 1) = P(1.04)$. So the multiplier is 1.04.

Answer:

1.04