Question

samuel has $30,000 in a savings account that earns 4% interest per year. the interest is not compounded. how much interest will he 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

$p = \$30,000$, $r = 0.04$, $t = 5$

Step2: Apply simple interest formula

$i = prt = 30000 \times 0.04 \times 5$

Step3: Calculate the interest

$i = 30000 \times 0.2 = 6000$

Answer:

$\$6000$