Question

warren has $60,000 in a savings account. the interest rate is 7% per year and is not compounded. how much will he have in total 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 given values

$p = 60000$, $r = 0.07$, $t = 1$

Step2: Calculate earned interest

$i = prt = 60000 \times 0.07 \times 1 = 4200$

Step3: Calculate total amount

$\text{Total} = p + i = 60000 + 4200$

Answer:

$64200$