Solved on Mar 07, 2024

Regan has $\$ 60$ in a savings account. Given interest rate of $5\%$ per year, not compounded, find the interest earned in 1 year using the formula $i = p r t$ .

STEP 1

Assumptions
1. The principal amount (starting amount) in the savings account is $60.<br />2. The annual interest rate is 5%.<br />3. The interest is not compounded.<br />4. The time for which the interest is calculated is 1 year.<br />5. The formula to calculate the interest earned is$ i = prt $, where$ i $is the interest,$ p $is the principal,$ r $is the interest rate expressed as a decimal, and$ t$ is the time in years.

STEP 2

First, we need to convert the interest rate from a percentage to a decimal.
$r = \frac{Interest\, rate}{100}$

STEP 3

Now, plug in the given interest rate to convert it into a decimal.
$r = \frac{5\%}{100}$

STEP 4

Calculate the decimal value of the interest rate.
$r = \frac{5}{100} = 0.05$

STEP 5

Now we will use the formula for calculating the interest earned, which is $i = prt$ .

STEP 6

Plug in the values for the principal amount ( $p$ ), the interest rate as a decimal ( $r$ ), and the time in years ( $t$ ) into the formula.
$i = p \cdot r \cdot t$

STEP 7

Substitute the known values into the formula.
$i = \$60 \cdot 0.05 \cdot 1$

STEP 8

Calculate the interest earned.
$i = \$60 \cdot 0.05 \cdot 1 = \$3$
Regan will earn $3 in interest in 1 year.

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Regan has $\$ 60$ in a savings account. Given interest rate of $5\%$ per year, not compounded, find the interest earned in 1 year using the formula $i = p r t$ .

STEP 1

STEP 2

First, we need to convert the interest rate from a percentage to a decimal.
$r = \frac{Interest\, rate}{100}$

STEP 3

Now, plug in the given interest rate to convert it into a decimal.
$r = \frac{5\%}{100}$

STEP 4

Calculate the decimal value of the interest rate.
$r = \frac{5}{100} = 0.05$

STEP 5

Now we will use the formula for calculating the interest earned, which is $i = prt$ .

STEP 6

Plug in the values for the principal amount ( $p$ ), the interest rate as a decimal ( $r$ ), and the time in years ( $t$ ) into the formula.
$i = p \cdot r \cdot t$

STEP 7

Substitute the known values into the formula.
$i = \$60 \cdot 0.05 \cdot 1$

STEP 8

Calculate the interest earned.
$i = \$60 \cdot 0.05 \cdot 1 = \$3$
Regan will earn $3 in interest in 1 year.

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Regan has $60\$ 60$60 in a savings account. Given interest rate of 5%5\%5% per year, not compounded, find the interest earned in 1 year using the formula i=prti = p r ti=prt.

STEP 1

STEP 2

First, we need to convert the interest rate from a percentage to a decimal.r=Interest rate100 r = \frac{Interest\, rate}{100} r=100Interestrate​

STEP 3

Now, plug in the given interest rate to convert it into a decimal.r=5%100 r = \frac{5\%}{100} r=1005%​

STEP 4

Calculate the decimal value of the interest rate.r=5100=0.05 r = \frac{5}{100} = 0.05 r=1005​=0.05

STEP 5

Now we will use the formula for calculating the interest earned, which is i=prti = prti=prt.

STEP 6

Plug in the values for the principal amount (ppp), the interest rate as a decimal (rrr), and the time in years (ttt) into the formula.i=p⋅r⋅t i = p \cdot r \cdot t i=p⋅r⋅t

STEP 7

Substitute the known values into the formula.i=$60⋅0.05⋅1 i = \$60 \cdot 0.05 \cdot 1 i=$60⋅0.05⋅1

STEP 8

Calculate the interest earned.i=$60⋅0.05⋅1=$3 i = \$60 \cdot 0.05 \cdot 1 = \$3 i=$60⋅0.05⋅1=$3Regan will earn $3 in interest in 1 year.

Start learning now

Download Studdy AI Tutor now. Learn with ease and get all help you need to be successful at school.

Regan has $\$ 60$ in a savings account. Given interest rate of $5\%$ per year, not compounded, find the interest earned in 1 year using the formula $i = p r t$ .

First, we need to convert the interest rate from a percentage to a decimal.
$r = \frac{Interest\, rate}{100}$

Now, plug in the given interest rate to convert it into a decimal.
$r = \frac{5\%}{100}$

Calculate the decimal value of the interest rate.
$r = \frac{5}{100} = 0.05$

Now we will use the formula for calculating the interest earned, which is $i = prt$ .

Plug in the values for the principal amount ( $p$ ), the interest rate as a decimal ( $r$ ), and the time in years ( $t$ ) into the formula.
$i = p \cdot r \cdot t$

Substitute the known values into the formula.
$i = \$60 \cdot 0.05 \cdot 1$

Calculate the interest earned.
$i = \$60 \cdot 0.05 \cdot 1 = \$3$
Regan will earn $3 in interest in 1 year.