Isabella has $90,000 in a savings account that earns 11 3/8% annually. The interest is not compounded. To the nearest cent, how much interest will she earn in 3 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.

Round your answer to the nearest cent.

Question

Isabella has $90,000 in a savings account that earns 11 3/8% annually. The interest is not compounded. To the nearest cent, how much interest will she earn in 3 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.

Round your answer to the nearest cent.

Quizzma Team · Answer

To calculate the interest Isabella will earn in 3 years, we can use the formula:

[ i = prt ]

Where:

– ( i ) is the interest earned,

– ( p ) is the principal (starting amount) = $90,000,

– ( r ) is the interest rate expressed as a decimal = ( 11 frac{3}{8}% = frac{91}{8} % = 0.011375 ) (to convert percentage to decimal, divide by 100),

– ( t ) is the time in years = 3.

Now, plug the values into the formula:

1. Convert the interest rate:

[ 11 frac{3}{8}% = 11.375% = frac{11.375}{100} = 0.11375 ]

2. Calculate the interest:

[

i = 90,000 times 0.11375 times 3

]

[

i = 90,000 times 0.11375 times 3 = 30,637.50

]

Therefore, to the nearest cent, Isabella will earn $30,637.50 in interest over 3 years.

Great job! If you have more questions, feel free to ask!

1 Answer