Ji-yoon has a savings account with $690 in it that earns 7% simple interest per year. How much money, to the nearest penny, will Ji-yoon have in 8 years? Give your answer in dollars.

Respuesta :

Let's begin by identifying key information given to us:

Principal (p) = $690

Interest rate (r) = 7% = 0.07 per year

Time (t) = 8 years

The amount of money that Ji-yoon has in 8 years is calculated as shown below:

[tex]\begin{gathered} I=p\times r\times t \\ I=690\times0.07\times8=386.4 \\ I=\text{ \$}386.40 \\ \\ \text{The total amount Ji-yoon has after 8 years is:} \\ Total=\text{\$(}386.40+$690$) \\ Total=\text{\$}1,076.40 \end{gathered}[/tex]