Answer :
Sure, let's find the interest earned on Ed Bland's savings step-by-step.
### Step-by-Step Solution:
1. Identify the given values:
- Principal (initial savings): [tex]$870
- Interest rate: \(4 \frac{1}{2} \%\)
- Time period: 3 years
2. Convert the interest rate to decimal form:
- \(4 \frac{1}{2} \% = 4.5\% \)
- In decimal form, \(4.5\% = \frac{4.5}{100} = 0.045\)
3. Use the simple interest formula:
The formula for simple interest is \( I = P \times r \times t \)
- \(P\) is the principal
- \(r\) is the interest rate in decimal
- \(t\) is the time period in years
4. Substitute the given values into the formula:
- \(P = 870\)
- \(r = 0.045\)
- \(t = 3\)
\( I = 870 \times 0.045 \times 3 \)
5. Calculate the interest:
- \( I = 870 \times 0.045 = 39.15 \)
- \( 39.15 \times 3 = 117.45 \)
6. Round the final answer to the nearest cent:
- The calculated interest is $[/tex]117.45
### Conclusion:
The interest earned on Ed Bland's savings was \$117.45.
### Step-by-Step Solution:
1. Identify the given values:
- Principal (initial savings): [tex]$870
- Interest rate: \(4 \frac{1}{2} \%\)
- Time period: 3 years
2. Convert the interest rate to decimal form:
- \(4 \frac{1}{2} \% = 4.5\% \)
- In decimal form, \(4.5\% = \frac{4.5}{100} = 0.045\)
3. Use the simple interest formula:
The formula for simple interest is \( I = P \times r \times t \)
- \(P\) is the principal
- \(r\) is the interest rate in decimal
- \(t\) is the time period in years
4. Substitute the given values into the formula:
- \(P = 870\)
- \(r = 0.045\)
- \(t = 3\)
\( I = 870 \times 0.045 \times 3 \)
5. Calculate the interest:
- \( I = 870 \times 0.045 = 39.15 \)
- \( 39.15 \times 3 = 117.45 \)
6. Round the final answer to the nearest cent:
- The calculated interest is $[/tex]117.45
### Conclusion:
The interest earned on Ed Bland's savings was \$117.45.
