Question

Dylan has $31,000 in a savings account. The interest rate is 12% per year and is not compounded. To the nearest Dollar, how much interest will he earn in 3 years? Use the formula I = PRT, where I is the interest earned, P is the principal, R is the interest rate expressed as a decimal, and T is the time in years. Round your answer to the nearest dollar.

Answer 1

Dylan will earn $11,160 interest on a $31,000 principal at a 12% annual simple interest rate over 3 years, calculated using the formula I = PRT.

Step-by-step explanation:

To calculate the amount of interest Dylan will earn in 3 years on his $31,000 savings account at a 12% annual simple interest rate, we use the formula I = PRT, where:

• P is the principal amount ($31,000)
• R is the annual interest rate (12% or 0.12 as a decimal)
• T is the time in years (3 years)

Now, substitute the values into the formula:

I = $31,000 × 0.12 × 3

I = $31,000 × 0.36

I = $11,160

Therefore, to the nearest dollar, Dylan will earn $11,160 in interest over 3 years.