Marshall has $700 in an account that earns 13% interest compounded annually. At the end of one year Marshall will have the sum of $791.
How to calculate simple interest amount?
If the initial amount (also called as principal amount) is P, and the interest rate is R% annually, and it is left for T years for that simple interest.
then the interest amount earned is given by:
[tex]I = \dfrac{P \times R \times T}{100}[/tex]
The principal amount (P)= $700
The interest rate(R) = 13%
The period of investment (T) = 1 year
Simple interest
= P×T×R/100
= 700×T×13/100
= 9100/100
= $91
Therefore, the total amount she will receive at the end of a year
= 700 + 91
= $791
Learn more about simple interest here:
brainly.com/question/25793394
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