Question

Molly have 97,905 and the same with account the interest rate is 2% per year and is not compounded how much interest will she earn in 8 months use the formula I equals PRT where is the interest p is the principal or is the interest rate expressed as a decimal and t is the time in years

Answer 1

To calculate the interest earned using the formula \( I = PRT \), where:

- \( I \) is the interest,
- \( P \) is the principal amount,
- \( R \) is the interest rate (expressed as a decimal),
- \( T \) is the time in years.

Let's break this down step by step:

1. **Identify the values**:
- \( P = 97,905 \) (the principal amount)
- \( R = 2\% = 0.02 \) (the interest rate expressed as a decimal)
- \( T = \frac{8 \text{ months}}{12 \text{ months/year}} = \frac{2}{3} \text{ years} \)

2. **Substitute the values into the formula**:
\[
I = 97,905 \times 0.02 \times \frac{2}{3}
\]

3. **Calculate**:
- First, calculate \( 97,905 \times 0.02 \):
\[
97,905 \times 0.02 = 1,958.10
\]

- Then multiply by \( \frac{2}{3} \):
\[
I = 1,958.10 \times \frac{2}{3} = 1,305.40
\]

So, the total interest Molly will earn in 8 months is **$1,305.40**.