Question

Winston has $20,000 in a savings account that earns 14% annually.The interest is not compounded.How much interest will he earn in 3 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 t is the time in years.

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Answer 1

I = $ 8,400.00

Explanation:

First, converting R percent to r a decimal

r = R/100 = 14%/100 = 0.14 per year,

then, solving our equation

I = 20000 × 0.14 × 3 = 8400

I = $ 8,400.00

The simple interest accumulated

on a principal of $ 20,000.00

at a rate of 14% per year

for 3 years is $ 8,400.00.

Hope this helps!!