Question

# Edmondhas$100,000inasavingsaccountthatearns12%annually.Theinterestisnotcompounded.Howmuchwillhehaveintotalin5years? 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

$160,000

- Q: What is the formula to calculate interest earned? A: The formula is 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.
- Substitute the given values into the formula: i = prt = 100,000 * 0.12 * 5 = 60,000.
- Add the interest to the principal to find the total amount: 100,000 + 60,000 = 160,000.