Question

bernard has $400 in a savings account that earns 1% annually. the interest is not compounded. how much interest will he earn in 5 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 of p, r, t

p = $400, r = 1% = 0.01, t = 5 years

Step2: Apply formula \( i = prt \)

\( i = 400 \times 0.01 \times 5 \)
\( i = 400 \times 0.05 \)
\( i = 20 \)

Answer:

$20