Question

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. sara puts $75 in a savings account that earns 12% each year. the interest in not compounded. how much interest will she earn in 2 years?

Answer 1

Using the simple interest formula i = prt, Sara will earn $18 in interest over 2 years by depositing $75 into a savings account with an annual interest rate of 12%.

Step-by-step explanation:

To calculate the interest Sara will earn, we use the simple interest formula i = prt. In this case, p (the principal) is $75, r (the annual interest rate) is 0.12 (because 12% as a decimal is 0.12), and t (the time in years) is 2 years. Substituting these values into the formula gives us:

i = 75 × 0.12 × 2 = $18

Sara will earn $18 in interest over 2 years.