Question

Brittany has 34,011 in a savings account that earns 6% annually. the interest is not compounded. How much interest will she earn in 4 years? use the formula I = PRT, where I is the interest earned, p is the principal, r as the interest rate expressed as a decimal, and T is the time in years.

Answer 1

Notice that we are dealing with simple interest, and therefore given by the formula:

I = P * R * T

where P = $34,011

R = 6% in "decimal" form (0.06)

T = 4 (for 4 years)

Then, we have:

I = 34011 * 0.06 * 4 = $8162.64

This is the interest Brittany earned in 4 years.