Allie has $400 in a savings account that earns 5% interest per year. The interest is not compounded. How much interest will she earn 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. $_____
Q. Allie has $400 in a savings account that earns 5% interest per year. The interest is not compounded. How much interest will she earn 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. $_____
Identify Principal Amount: Step 1: Identify the principal amount p from the problem.p=$400
Convert Interest Rate: Step 2: Convert the interest rate r from a percentage to a decimal.r=5%=0.05
Determine Time in Years: Step 3: Determine the time (t) in years for which the interest is calculated.t=1 year
Calculate Interest Using Formula: Step 4: Use the formula i=prt to calculate the interest.i=400×0.05×1
Perform Multiplication: Step 5: Perform the multiplication to find the interest. i=400×0.05×1=20