Question

Aishahas$50,000inasavingsaccountthatearns8%annually.Theinterestisnotcompounded.Howmuchwillshehaveintotalin1year?

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.

Answer 1

Use i = prt.

p = $50,000, r = 0.08, t = 1.

i = 50,000 × 0.08 × 1 = $4,000.

Total = principal + interest = 50,000 + 4,000 = $54,000.