Shivani has $800 in a savings account. The interest rate is 10% per year and is not compounded. How much interest will she earn in 1 year? Use the formula i=prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.$_____
Q. Shivani has $800 in a savings account. The interest rate is 10% per year and is not compounded. How much interest will she earn in 1 year? Use the formula i=prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.$_____
Convert to decimal: Step 1: Convert the interest rate to a decimal.Reasoning: The interest rate needs to be in decimal form to use in the formula.Calculation: 10%=0.10
Identify principal amount: Step 2: Identify the principal amount.Reasoning: The principal is the initial amount of money in the savings account.Calculation: Principal p = $800
Set time for calculation: Step 3: Set the time for which the interest is calculated.Reasoning: The interest is calculated for 1 year.Calculation: Time (t)=1 year
Calculate interest using formula: Step 4: Calculate the interest using the formula i=prt. Reasoning: To find the interest earned in one year. Calculation: i=800×0.10×1
Perform multiplication to find interest: Step 5: Perform the multiplication to find the interest.Reasoning: Multiplying the principal by the rate and the time gives the interest.Calculation: i=800×0.10=80