Question

gwen has $800 in a savings account that earns 12% annually. the interest is not compounded. how much interest will she earn in 3 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 \( p = 800 \), rate \( r = 12\% = 0.12 \), time \( t = 3 \) years.

Step2: Apply simple interest formula \( i = prt \)

Substitute values: \( i = 800 \times 0.12 \times 3 \)
Calculate: \( 800 \times 0.12 = 96 \), then \( 96 \times 3 = 288 \)

Answer:

288