Question

Isabella has $61,000 in a savings account. The interest rate is 14

% per year and is not compounded. How much will she have in
total in 4 years?
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 it is the time in years.

Answer 1

$95,160

Explanation:

Simple Interest Formula

I = Prt

where:

• I = total interest accrued.
• P = principal.
• r = interest rate (in decimal form).
• t = time (in years).

Given values:

• P = $61,000
• r = 14% = 0.14
• t = 4 years

Substitute the given values into the formula to calculate how much interest the account accrued in 4 years:

`\implies \sf I=61000 \cdot 0.14 \cdot 4`

`\implies \sf I=8540 \cdot 4`

`\implies \sf I=34160`

Therefore, the account accrued $34,160 of interest in 4 years.

To find how much Isabella will have in total after 4 years, add the principal to the interest:

`\implies \sf A=61000+34160`

`\implies \sf A=95160`

Therefore, Isabella will have a total of $95,160 in 4 years.