To calculate the interest earned using the formula \( i = prt \), we need to identify the values for \( p \), \( r \), and \( t \):
- \( p = 97,905 \) (the principal amount in the savings account)
- \( r = 0.02 \) (the interest rate expressed as a decimal, which is 2% or 0.02)
- \( t = \frac{8}{12} \) (the time in years; 8 months is \(\frac{8}{12}\) years, which simplifies to \(\frac{2}{3}\) years)
Now we can substitute these values into the formula:
\[ i = p \cdot r \cdot t \] \[ i = 97,905 \cdot 0.02 \cdot \frac{2}{3} \]
Calculating the interest step by step:
- Calculate \( 0.02 \times 97,905 \):
\[ 0.02 \times 97,905 = 1,958.10 \]
- Now multiply \( 1,958.10 \) by \( \frac{2}{3} \):
\[ i = 1,958.10 \times \frac{2}{3} = 1,958.10 \times 0.6667 \approx 1,305.40 \]
Thus, the interest earned by Molly in 8 months is approximately $1,305.40.
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