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Jeremiahhas$30,000inasavingsaccountthatearns4.4%interestperyear.Theinterestisnotcompounded.Tothenearestcent,howmuchinterestwillheearnin4years?

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.

Round your answer to the nearest cent.

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1 answer

To calculate the interest earned using the formula \( i = prt \):

  • \( p = 30,000 \) (the principal amount)
  • \( r = 4.4% = 0.044 \) (the interest rate expressed as a decimal)
  • \( t = 4 \) (the time in years)

Now, substituting the values into the formula:

\[ i = prt = 30000 \times 0.044 \times 4 \]

Calculating it step-by-step:

  1. Calculate \( 0.044 \times 4 = 0.176 \)
  2. Now, calculate \( 30000 \times 0.176 = 5280 \)

So, the total interest earned in 4 years is:

\[ i = 5280 \]

Thus, rounded to the nearest cent, Jeremiah will earn $5280.00 in interest over 4 years.