Final answer:
Dakota will earn $4 in interest over 2 years on her savings account with a 5% annual interest rate, as the interest is not compounded.
Step-by-step explanation:
The question asks how much interest Dakota will earn in 2 years on her $40 savings account that earns 5% interest per year with the interest not being compounded. To calculate the interest earned, we use the formula for simple interest: Interest = Principal × Rate × Time.
Here, the principal amount (P) is $40, the annual interest rate (r) is 5% or 0.05 when expressed as a decimal, and the time (t) is 2 years.
Using the formula, we calculate:
Interest = $40 × 0.05 × 2 = $4.
Therefore, Dakota will earn $4 in interest over the 2-year period without compounding.