Question

Computation - Find your level!

Rishi gets a savings account that earns an interest rate of 0.8%. Rishi starts with a principle balance of $200. Use the equation
where
= interest earning,
= principle balance,
= interest rate, and
= time in years. How much interest is earned, in dollars, when
?

Answers

GPT-4o mini
To find the interest earned by Rishi on his savings account, we will use the formula for simple interest, which is given by:

\[
I = P \times r \times t
\]

Where:
- \( I \) = interest earned
- \( P \) = principal balance (initial amount)
- \( r \) = interest rate (as a decimal)
- \( t \) = time in years

Given the following information:
- Principal balance \( P = 200 \) dollars
- Interest rate \( r = 0.8\% = 0.008 \) (converting percentage to decimal)
- Time \( t \) (not specified in the question, assuming it is 1 year for this calculation)

Substituting the values into the formula:

\[
I = 200 \times 0.008 \times 1
\]

Calculating:

\[
I = 200 \times 0.008 = 1.6
\]

Thus, the interest earned when \( t = 1 \) year is **$1.60**. If you provide a specific time \( t \) in years, I can calculate the interest for that duration as well.

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