Question

tessa has $90,000 in a savings account that earns 7% annually. the interest 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: Identify values for p, r, t

Principal \( p = 90000 \), rate \( r = 7\% = 0.07 \), time \( t = 2 \).

Step2: Calculate interest (I) using \( I = prt \)

\( I = 90000 \times 0.07 \times 2 \)
\( I = 90000 \times 0.14 \)
\( I = 12600 \)

Step3: Calculate total amount (A = p + I)

\( A = 90000 + 12600 \)
\( A = 102600 \)

Answer:

\( \$102600 \)