Question

troy has $80,000 in a savings account. the interest rate is 9% per year and is not compounded. how much will he have in total in 2 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 \( p = 80000 \), rate \( r = 9\% = 0.09 \), time \( t = 2 \).

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

\( i = 80000 \times 0.09 \times 2 \)
\( i = 80000 \times 0.18 \)
\( i = 14400 \)

Step3: Find total amount (principal + interest)

Total = \( p + i = 80000 + 14400 = 94400 \)

Answer:

94400