nth grade P. 12 Simple interest ETY Suzie has \( \$ 700 \) in a savings account that earns \( 10 \% \) annually. The interest is not compounded. How much will she have in total in 1 year? 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 calculate the interest earned by Suzie in one year, we can use the formula \( i = p \cdot r \cdot t \). Here, \( p = 700 \), \( r = 0.10 \) (because \( 10\% = 0.10 \)), and \( t = 1 \) year. Plugging in these values gives us \( i = 700 \cdot 0.10 \cdot 1 = 70 \). So, Suzie will earn \( \$70 \) in interest. To find the total amount in her account after one year, we simply add the interest to the principal: \( 700 + 70 = 770 \). Therefore, Suzie will have \( \$770 \) in total after one year. Suzie's experience with simple interest is a great example of how money can grow over time, even without compounding! Harnessing this knowledge can be beneficial; for instance, understanding how simple interest works can help you when considering loans or savings accounts. It’s like being a savvy financial detective, ensuring that you're making the best choices with your money! If you want to dive deeper into the world of interest rates, consider exploring concepts like compound interest versus simple interest. Compound interest can be a game-changer since it earns interest on both the initial principal and the interest that has already accrued! There are plenty of resources available online and in books that can help you understand how to make your money work harder for you over time. It’s a financial adventure waiting for you!