Matthas$52,069inasavingsaccountthatearns13%annually.Theinterestisnotcompounded.Tothenearestdollar,howmuchinterestwillheearnin5years?
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.
Round your answer to the nearest dollar.
First, we calculate the interest earned using the formula:
i = prt
i = $52,069 * 0.13 * 5
i = $3,390.045
Rounded to the nearest dollar, Matthas will earn $3,390 in interest in 5 years.