Question

Tedhas$90,000inasavingsaccountthatearns9%annually.Theinterestisnotcompounded.Howmuchinterestwillheearnin8months? 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

Answer 1

$5,400

Explanation:

The formula =

I = PRT

I = Interest earned

P is the principal (starting amount) = $90000

R is the interest rate = 9% = 0.09

T is the time in years = 8 months

Converting 8 months to years

12 months = 1 year

8 months = x

= 8 months/12

= 0.67 year

I = $90,000 × 0.09 × 0.6667

I =$5,400.27

I = $5400

Therefore, the interest he will earn in 8 months = $5,400