Question

dylan earns 3.7% simple interest on his principal amount of $10,500. no additional money is deposited or withdrawn from dylan’s account. what is the total amount of dylan’s account at the end of one year?

Explanation:

Step1: Recall simple interest formula

The formula for simple interest is $I = P \times r \times t$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal), and $t$ is the time in years. The total amount $A$ is $A = P + I$.

Step2: Convert rate to decimal

Given $r = 3.7\% = 0.037$, $P = \$10500$, and $t = 1$ year.

Step3: Calculate interest

Substitute values into the interest formula: $I = 10500 \times 0.037 \times 1$.
$I = 10500 \times 0.037 = 388.5$

Step4: Calculate total amount

$A = P + I = 10500 + 388.5 = 10888.5$

Answer:

$\$10888.5$