Question

brad has $70,000 in a savings account that earns 4% 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 given values

$p = 70000$, $r = 0.04$, $t = 5$

Step2: Plug values into simple interest formula

$i = prt = 70000 \times 0.04 \times 5$

Step3: Calculate the interest

$i = 70000 \times 0.2 = 14000$

Answer:

$\$14000$