Question

hannah has $40,000 in a savings account that earns 13% annually. the interest is not compounded. how much interest will she earn in 5 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

$p = 40000$, $r = 0.13$, $t = 5$

Step2: Apply simple interest formula

$i = prt = 40000 \times 0.13 \times 5$

Step3: Calculate the product

$i = 40000 \times 0.65$

Answer:

26000