Myrahas$20inasavingsaccountthatearns5%annually.Theinterestisnotcompounded.Howmuchinterestwillsheearnin5years?
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.
Given:
- Principal (p) = $20
- Interest rate (r) = 5% or 0.05
- Time (t) = 5 years
Substitute these values into the formula:
i = (0.05) * $20 * 5
i = 0.25 * $20
i = $5
Therefore, Myra will earn $5 in interest in 5 years.