Question

ernesto has $500 in a savings account that earns 2% interest per year. the interest is not compounded. how much will he have in total in 3 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

p = 500, r = 0.02 (2% as decimal), t = 3

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

\( i = 500 \times 0.02 \times 3 \)
\( i = 30 \)

Step3: Total amount = Principal + Interest

Total = 500 + 30 = 530

Answer:

530