Question

rhianna has $90,000 in a savings account. the interest rate is 2% per year and is not compounded. how much interest will she earn in 4 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

$p = 90000$, $r = 0.02$ (2% as decimal), $t = 4$

Step2: Apply formula \(i = prt\)

\(i = 90000 \times 0.02 \times 4\)

Step3: Calculate

\(90000 \times 0.02 = 1800\); \(1800 \times 4 = 7200\)

Answer:

7200