Roberthas$60,000inasavingsaccountthatearns

Question

1
1
8
%annually.Theinterestisnotcompounded.Howmuchinterestwillheearnin3years?

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.

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Answer 1

To calculate the interest Robertha will earn in 3 years using the formula \( i = prt \), where:

• \( p \) is the principal (starting amount) = $60,000
• \( r \) is the interest rate expressed as a decimal = 8% = 0.08
• \( t \) is the time in years = 3

Now, plug the values into the formula:

\[ i = 60000 \times 0.08 \times 3 \]

Now, calculate it step by step:

1. Multiply the principal by the interest rate: \[ 60000 \times 0.08 = 4800 \]

2. Then multiply that result by the time in years: \[ 4800 \times 3 = 14400 \]

So, the total interest earned in 3 years will be:

\[ \boxed{14400} \]