Molly has $97,905 in a savings account.The interest rate is 2%pe ryea rand is not compounded.How much interest will she earn in 8 months?

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 earned using the formula \( i = prt \), we first need to identify the values of \( p \), \( r \), and \( t \):

  • \( p = 97,905 \) (the principal amount),
  • \( r = 2% = \frac{2}{100} = 0.02 \) (the interest rate expressed as a decimal),
  • \( t = \frac{8}{12} = \frac{2}{3} \) (the time in years, since 8 months is \(\frac{8}{12}\) of a year).

Now, we can substitute these values into the formula:

\[ i = prt = 97,905 \times 0.02 \times \frac{2}{3} \]

Calculating this step by step:

  1. Calculate \( 97,905 \times 0.02 \): \[ 97,905 \times 0.02 = 1,958.10 \]

  2. Now multiply this result by \(\frac{2}{3}\): \[ 1,958.10 \times \frac{2}{3} = 1,312.07 \]

Therefore, the interest earned in 8 months is approximately $1,312.07.