Question

bruce has $70,000 in a savings account. the interest rate is 4% per year and is not compounded. how much interest will he 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

$p = 70000$, $r = 0.04$, $t = 2$

Step2: Plug values into simple interest formula

$i = prt = 70000 \times 0.04 \times 2$

Step3: Calculate the interest

$i = 70000 \times 0.08 = 5600$

Answer:

$\$5600$