Question
Megan has $90,000 in a savings account that earns 12% interest per year. The interest is not compounded. How much interest will she earn in 4 years? Use the formula i = prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.
Answers
GPT-4o mini
To calculate the interest earned using the formula \( i = prt \), we need to identify the values for \( p \), \( r \), and \( t \):
- \( p = 90,000 \) (the principal amount)
- \( r = 0.12 \) (the interest rate expressed as a decimal; 12% as a decimal is 0.12)
- \( t = 4 \) (the time in years)
Now, we can substitute these values into the formula:
\[
i = prt
\]
\[
i = 90,000 \times 0.12 \times 4
\]
Calculating the right side:
First, calculate \( 90,000 \times 0.12 \):
\[
90,000 \times 0.12 = 10,800
\]
Now, multiply by 4:
\[
10,800 \times 4 = 43,200
\]
Therefore, the total interest earned in 4 years is:
\[
\boxed{43,200}
\]
- \( p = 90,000 \) (the principal amount)
- \( r = 0.12 \) (the interest rate expressed as a decimal; 12% as a decimal is 0.12)
- \( t = 4 \) (the time in years)
Now, we can substitute these values into the formula:
\[
i = prt
\]
\[
i = 90,000 \times 0.12 \times 4
\]
Calculating the right side:
First, calculate \( 90,000 \times 0.12 \):
\[
90,000 \times 0.12 = 10,800
\]
Now, multiply by 4:
\[
10,800 \times 4 = 43,200
\]
Therefore, the total interest earned in 4 years is:
\[
\boxed{43,200}
\]