Answer:
$86.8
Step-by-step explanation:
Given that,
Principal, P = $80
Rate of interest, R = 8.5%
We need to find the money he will have in 1 year. As the interest is not compounded, it must be simple interest. The simple interest can be calculated by the formula,
[tex]I=\dfrac{PRT}{100}\\\\I=\dfrac{80\times 8.5\times 1}{100}\\\\=\$ 6.8[/tex]
We know that,
Amount = Principal + interest
= $80 + $6.8
= $86.8
Hence, the amount will become $86.8.
