jaden has $52,260 in a savings account that earns 10% annually. the interest is not compounded. how much…
jaden has $52,260 in a savings account that earns 10% annually. the interest is not compounded. how much will he have in total in 8 months? 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.
Answer
Explanation:
Step1: Convert time to years
Since there are 12 months in a year, 8 months $t=\frac{8}{12}=\frac{2}{3}$ years.
Step2: Convert interest - rate to decimal
The annual interest rate $r = 10%=0.1$.
Step3: Calculate the interest
The principal $p = 52260$. Using the simple - interest formula $i = prt$, we have $i=52260\times0.1\times\frac{2}{3}$. $i = 52260\times\frac{0.1\times2}{3}=52260\times\frac{0.2}{3}=3484$.
Step4: Calculate the total amount
The total amount $A=p + i$. So $A = 52260+3484 = 55744$.
Answer:
$55744$