Mitchhas$28,100inasavingsaccount.Theinterestrateis13%peryearandisnotcompounded.Howmuchwillhehaveintotalin2years?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.
Question
Mitchhas$28,100inasavingsaccount.Theinterestrateis13%peryearandisnotcompounded.Howmuchwillhehaveintotalin2years?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.
Solution
To solve this problem, we will use the formula for simple interest: i = prt.
Step 1: Identify the values from the problem.
- The principal, p, is the starting amount, which is $28,100.
- The interest rate, r, is 13% per year. However, we need to express this as a decimal, so we divide 13 by 100 to get 0.13.
- The time, t, is 2 years.
Step 2: Substitute the values into the formula.
- i = prt
- i = $28,100 * 0.13 * 2
Step 3: Calculate the interest.
- i = $7,286
This means that Mitch will earn $7,286 in interest over 2 years.
Step 4: Add the interest to the starting amount to find the total amount in the account after 2 years.
- Total = p + i
- Total = 7,286
- Total = $35,386
So, Mitch will have $35,386 in total in his savings account after 2 years.
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