Question

Devon has $900 in a savings account. The interest rate is 7% per year and is not

compounded. How much interest will she earn in 2 years?
Use the formula i = prt, where i is the interest earned, p is the principal (starting amount),
is the interest rate expressed as a decimal, and t is the time in years.
=

Answer 1

$ 12600

Explanation:

According to the question, you have to find the simple interest that Devon earn after 2 years,

You can use this formula to find that.

I = P r t

Here,

P = principal ( $ 900)

r = rate ( 7%)

t = time ( 2 years)

Let us solve now.

I = p × r × t

= $ 900 × 7% × 2 years

= 6300 × 2

= $ 12600

Hope this helps you.

Let me know if you have any other questions :-)