Question

Seanhas$72,150inasavingsaccount.Theinterestrateis11%peryearandisnotcompounded.Howmuchinterestwillheearnin8months?

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

Answer: $5,291.

Explanation:

We can just use the formula I=p*r*t or I=prt.

We know that p (principal)=72,150

We know that interest rate as a decimal would be 0.11 (11/100)

and the time in years is 8/12 years, or 2/3 years,

Now to solve

72,150x0.11x(2/3)=5,291.