Question

Luciahas$40,000inasavingsaccountthatearns14%annually.Theinterestisnotcompounded.Howmuchinterestwillsheearnin4years? 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

$22,400.

Explanation:

First, converting R percent to r a decimal

r = R/100 = 14%/100 = 0.14 per year,

then, solving our equation

I = 40000 × 0.14 × 4 = 22400

I = $ 22,400.00

The simple interest accumulated

on a principal of $ 40,000.00

at a rate of 14% per year

for 4 years is $ 22,400.00.