Question

akira has $900 in a savings account that earns 5% annually. the interest is not compounded. how much interest will she earn in 1 year? 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.

Explanation:

Step1: Identify values for p, r, t

Principal \( p = 900 \), rate \( r = 5\% = 0.05 \), time \( t = 1 \) year.

Step2: Apply simple interest formula \( I = prt \)

Substitute values: \( I = 900 \times 0.05 \times 1 \)
Calculate: \( 900 \times 0.05 = 45 \), then \( 45 \times 1 = 45 \)

Answer:

\( 45 \)