Question

Emma has $17 in a savings account. The interest rate is 20% per year and is not compounded. How much will she have in 4 years? Use formula i=p*r*t, 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.

Answer 1

In order to find how much money Emma will have in 4 years, first let's calculate the interest, using the formula given.

For p = 17, i = 20% = 0.2 and t = 4, we have:

$\begin{gathered} i=p\cdot r\cdot t \\ i=17\cdot0.2\cdot4 \\ i=13.6 \end{gathered}$

The interest generated is $13.6. Adding this to the principal, the total amount will be:

$17+13.6=30.6$

So Emma will have $30.6.