Question

shaquana invests money in an account paying a simple interest of 1% per year. if m represents the amount of money she invests, which expression represents her balance after a year, assuming she makes no additional withdrawals or deposits?
answer
○ 1.01m
○ 0.01m
○ 1m
○ 1.001m
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Explanation:

Step1: Recall simple interest formula for balance

The formula for the balance \( A \) with simple interest after \( t \) years is \( A = P(1 + rt) \), where \( P \) is the principal amount, \( r \) is the annual interest rate (in decimal), and \( t \) is the time in years. Here, \( P = m \), \( r = 1\% = 0.01 \), and \( t = 1 \) year.

Step2: Substitute values into the formula

Substitute \( P = m \), \( r = 0.01 \), and \( t = 1 \) into the formula \( A = P(1 + rt) \):

$$ A = m(1 + 0.01\times1) $$

Step3: Simplify the expression

Simplify \( 1 + 0.01\times1 \):

$$ 1 + 0.01 = 1.01 $$

So, \( A = 1.01m \).

Answer:

\( 1.01m \) (corresponding to the option "1.01m")