Wanda has $90 in a savings account. The interest rate is 10% per year and is not compounded. How much interest will she earn in 5 years? Use the formula i=prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.$_____
Q. Wanda has $90 in a savings account. The interest rate is 10% per year and is not compounded. How much interest will she earn in 5 years? Use the formula i=prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.$_____
Identify principal amount: Identify the principal amount p, which is the starting amount in the savings account. Wanda has $90 in her account.
Convert interest rate: Convert the interest rate r from a percentage to a decimal. The interest rate is 10%, so r=10010=0.1.
Determine time in years: Determine the time (t) in years that the interest will be earned. Wanda will earn interest for 5 years.
Calculate interest using formula: Use the formula i=prt to calculate the interest. Plug in the values: i=($90)×0.1×5.
Find total interest: Perform the multiplication to find the interest. i=$90×0.1×5=$45.