Khalil has \( \$ 300 \) in a savings account that earns \( 2 \% \) annually. The interest is not compounded. How much interest will he earn in 2 years? Use the 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.

To find the interest Khalil will earn in 2 years, we use the formula \( i = p r t \). Here, the principal \( p \) is \( \$300 \), the interest rate \( r \) is \( 0.02 \) (which is \( 2\% \) expressed as a decimal), and \( t \) is \( 2 \) years. Plugging these values into the formula gives us: \[ i = 300 \times 0.02 \times 2 = 12 \] So, Khalil will earn \( \$12 \) in interest over 2 years. Money matters have been around for centuries! The concept of interest originated in ancient Mesopotamia, where it was charged on loans in the form of grain or silver. Fast forward through history, once modern banking began in the Middle Ages, interest calculations became standardized and paved the way for the complex financial systems we see today. In real-world application, understanding simple interest can help with many financial decisions, such as choosing a savings account or making a loan. It’s crucial to read the fine print when it comes to interest rates—banks may advertise low rates but could have high fees! Always compare offers, and don't shy away from asking questions to ensure the best deal for your hard-earned cash!