Question

grayson has $600 in a savings account that earns 5% interest per year. the interest is not compounded. how much interest will he earn 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 values for p, r, t

p = 600, r = 5% = 0.05, t = 1

Step2: Apply formula i = prt

i = 600 0.05 1

Step3: Calculate the product

600 0.05 = 30, 30 1 = 30

Answer:

30