To calculate the total amount Heather will have in the account after 7 years with simple interest, you can use the formula:
\[S = P(1 + rt)\]
Where:
- \(S\) is the total amount in the account after \(t\) years
- \(P\) is the principal amount invested (initial investment), which is $37,300 in this case
- \(r\) is the interest rate per period, which is 6% or 0.06
- \(t\) is the time the money is invested for, which is 7 years in this case
1. Substitute the values into the formula:
\[S = 37,300(1 + 0.06 \times 7)\]
2. Calculate the total amount after 7 years:
\[S = 37,300(1 + 0.42)\]
\[S = 37,300 \times 1.42\]
\[S = 52,946\]
Therefore, Heather will have $52,946 in the account after 7 years with a simple interest rate of 6%.
