Question

bruce has $1,000 in a savings account that earns 3% annually. the interest is not compounded. how much interest will he earn in 4 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 \( p = 1000 \), rate \( r = 3\% = 0.03 \), time \( t = 4 \).

Step2: Apply simple interest formula \( I = prt \)

Substitute values: \( I = 1000 \times 0.03 \times 4 \)
Calculate: \( 1000 \times 0.03 = 30 \), then \( 30 \times 4 = 120 \)

Answer:

120