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

Principal \( p = 600 \), rate \( r = 5\% = 0.05 \), time \( t = 1 \) year.

Step2: Apply formula \( i = prt \)

Substitute values: \( i = 600 \times 0.05 \times 1 \)
Calculate: \( 600 \times 0.05 = 30 \), then \( 30 \times 1 = 30 \)

Answer:

\( 30 \)