Lillianhas$38,800inasavingsaccountthatearns6%annually.Theinterestisnotcompounded.Howmuchinterestwillsheearnin6months?

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.

1 answer

To calculate the interest Lillian will earn in 6 months using the formula \( i = prt \), we need to identify the values for \( p \), \( r \), and \( t \).

  • \( p = 38,800 \) (the principal amount)
  • \( r = 6% = 0.06 \) (the interest rate expressed as a decimal)
  • \( t = 6 \text{ months} = \frac{6}{12} \text{ years} = 0.5 \text{ years} \)

Now we can plug these values into the formula:

\[ i = prt \] \[ i = 38,800 \times 0.06 \times 0.5 \]

Now, calculate the interest:

\[ i = 38,800 \times 0.06 = 2,328 \] \[ i = 2,328 \times 0.5 = 1,164 \]

So, the interest Lillian will earn in 6 months is $1,164.