Wyatt has $60 in a savings account. The interest rate is 10% per year and is not compounded. How much interest will he earn in 5 years? Use the formula i=prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.$_____
Q. Wyatt has $60 in a savings account. The interest rate is 10% per year and is not compounded. How much interest will he earn in 5 years? Use the formula i=prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.$_____
Identify principal amount: Identify the principal amount p, which is the starting amount in the savings account. Wyatt has $60 in his 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. Wyatt will earn interest for 5 years.
Use formula for interest: Use the formula i=prt to calculate the interest. Plug in the values: i=($60)×0.1×5.
Calculate interest: Perform the multiplication to find the interest. i=($60)×0.1×5=($30).