Question

will has $50,000 in a savings account that earns 1.2% interest per year. the interest is not compounded. how much will he 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 \( p = 50000 \), rate \( r = 12\% = 0.12 \), time \( t = 2 \) years.

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

\( I = 50000 \times 0.12 \times 2 \)
\( I = 50000 \times 0.24 \)
\( I = 12000 \)

Step3: Calculate total amount

Total amount = Principal + Interest = \( 50000 + 12000 = 62000 \)

Answer:

\( \$62000 \)