Question

riley has $400 in a savings account. the interest rate is 14% per year and is not compounded. how much will she have in total in 2 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

Principal \( p = 400 \), interest rate \( r = 14\% = 0.14 \), time \( t = 2 \) years.

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

\( i = 400 \times 0.14 \times 2 \)
\( i = 400 \times 0.28 \)
\( i = 112 \)

Step3: Calculate total amount

Total amount = Principal + Interest = \( 400 + 112 = 512 \)

Answer:

\( 512 \)