Question

annie has $200 in a savings account that earns 8% annually. the interest is not compounded. how much will she have in total 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 values for p, r, t

Principal \( p = 200 \), rate \( r = 8\% = 0.08 \), time \( t = 5 \).

Step2: Calculate interest (I) using \( I = prt \)

Substitute values: \( I = 200 \times 0.08 \times 5 \).
\( 200 \times 0.08 = 16 \), then \( 16 \times 5 = 80 \).

Step3: Find total amount (Principal + Interest)

Total = \( 200 + 80 = 280 \).

Answer:

\( 280 \)