Question

gabrielle has $83,750 in a savings account. the interest rate is 9% per year and is not compounded. how much will she have in total in 2 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.

Explanation:

Step1: Convert rate to decimal

$r = \frac{9}{100} = 0.09$

Step2: Calculate earned interest

$I = prt = 8375 \times 0.09 \times 2$
$I = 8375 \times 0.18 = 1507.5$

Step3: Find total account value

$\text{Total} = p + I = 8375 + 1507.5$

Answer:

$9882.5$