Jane has $80,000 in a savings account. The interest rate is 2 4/5% per year and is not compounded. How much will she have in total 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.

To solve the problem, we’ll use the formula for simple interest:

[ i = prt ]

Where:

– ( p ) is the principal amount (starting amount): $80,000

– ( r ) is the interest rate as a decimal. Since the interest rate is ( 2 frac{4}{5}% ), we first convert this mixed number to an improper fraction:

– ( 2 frac{4}{5} = frac{14}{5} ) percent

– Convert this to a decimal: ( frac{14}{5} div 100 = 0.028 )

– ( t ) is the time in years: 3 years

Now, let’s calculate the interest:

1. Calculate ( i ):

[ i = 80000 times 0.028 times 3 ]

[ i = 80000 times 0.084 ]

[ i = 6720 ]

2. Now, add the interest to the principal to find the total amount:

[ text{Total} = p + i = 80000 + 6720 = 86720 ]

Since this amount does not match the options provided, let’s double-check the interest rate calculation.

Converting ( 2 frac{4}{5} ) again:

– ( 2 frac{4}{5}