Question

tracy has $80,000 in a savings account. the interest rate is 2% per year and is not compounded. how much will she have in total in 1 year? 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 of p, r, t

Principal \( p = 80000 \), rate \( r = 2\% = 0.02 \), time \( t = 1 \) year.

Step2: Calculate interest i

Using formula \( i = prt \), substitute values:
\( i = 80000 \times 0.02 \times 1 \)
\( i = 1600 \)

Step3: Calculate total amount

Total = Principal + Interest = \( 80000 + 1600 = 81600 \)

Answer:

\( 81600 \)