Question

melissa has $30,000 in a savings account. the interest rate is 9% per year and is not compounded. how much interest will she 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 given values

$p = 30000$, $r = 0.09$, $t = 4$

Step2: Substitute into simple interest formula

$i = prt = 30000 \times 0.09 \times 4$

Step3: Calculate the interest

$i = 30000 \times 0.36 = 10800$

Answer:

$\$10,800$