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Math  /  Numbers & Operations

QuestionLily has $500\$ 500 in a savings account that earns 10%10 \% annually. The interest is not compounded. How much will she have in total in 1 year?
Use the formula i=prti=p r t, where ii is the interest earned, pp is the principal (starting amount), rr is the interest rate expressed as a decimal, and tt is the time in years. \$

Studdy Solution

STEP 1

1. Lily has an initial principal amount of $500 \$500 .
2. The annual interest rate is 10% 10\% .
3. The interest is simple, not compounded.
4. The time period is 1 1 year.

STEP 2

1. Convert the interest rate to a decimal.
2. Use the formula to calculate the interest earned.
3. Calculate the total amount in the account after 1 year.

STEP 3

Convert the interest rate from a percentage to a decimal.
r=10100=0.10r = \frac{10}{100} = 0.10

STEP 4

Use the formula i=p×r×t i = p \times r \times t to calculate the interest earned.
Given: - p=500 p = 500 - r=0.10 r = 0.10 - t=1 t = 1
Substitute these values into the formula:
i=500×0.10×1i = 500 \times 0.10 \times 1

STEP 5

Calculate the interest earned.
i=500×0.10×1=50i = 500 \times 0.10 \times 1 = 50

STEP 6

Calculate the total amount in the account after 1 year by adding the interest to the principal.
Total Amount=p+i=500+50=550\text{Total Amount} = p + i = 500 + 50 = 550
The total amount Lily will have in her savings account after 1 year is:
$550\boxed{\$550}

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