Question

Porter has $99.931 in a savings account. The interest rate is 14% per year and is not compounded. To the nearest dollar, how much interest will he earn in 5 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. Round your answer to the nearest dollar.

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Answer 1

`~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$99.931\\ r=rate\to 14\%\to (14)/(100)\dotfill &0.14\\ t=years\dotfill &5 \end{cases} \\\\\\ I = (99.931)(0.14)(5)\implies I\approx 70`