Question

josie has $500 in a savings account that earns 15% interest per year. the interest 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), $r$ is the interest rate expressed as a decimal, and $t$ is the time in years.

Explanation:

Step1: Identify given values

$p = 500$, $r = 0.15$, $t = 2$

Step2: Plug values into formula

$i = 500 \times 0.15 \times 2$

Step3: Calculate the interest

$i = 500 \times 0.3 = 150$

Answer:

$\$150$