Alvinhas$40,000inasavingsaccountthatearns
12	
7
8
%interestperyear.Theinterestisnotcompounded.Howmuchwillhehaveintotalin2years?

To calculate how much Alvin will have in total after 2 years, we use the simple interest formula since the interest is not compounded:

\[
A = P(1 + rt)
\]

Where:
- $ A $ is the total amount after interest.
- $ P $ is the principal (initial amount), which is $40,000.
- $ r $ is the annual interest rate as a decimal, which is $ \frac{12}{7 \times 8} = 0.2143 $ or 21.43%.
- $ t $ is the time in years, which is 2 years.

### Step 1: Convert the percentage to a decimal
\[
r = 0.2143
\]

### Step 2: Plug the values into the formula
\[
A = 40,000(1 + (0.2143 \times 2))
\]
\[
A = 40,000(1 + 0.4286)
\]
\[
A = 40,000(1.4286)
\]
\[
A = 57,144
\]

So, Alvin will have $57,144 in total after 2 years.

Would you like more details or have any questions?

Here are 5 related questions for further practice:
1. How would the amount change if the interest rate was compounded annually?
2. What would the total be if the interest rate was 10% instead?
3. How much interest will Alvin earn in 2 years at this rate?
4. What would the total amount be after 5 years with the same rate?
5. How does the simple interest formula differ from the compound interest formula?

**Tip:** Always double-check if the interest is simple or compounded, as it can significantly affect the final amount.

Alvin has $40,000 in a savings account that earns 12 7 8 % interest per year. The interest is not compounded. How much will he have in total in 2 years?

Learn how to calculate the total amount Alvin will have in his savings account after 2 years with a 12 7/8% annual interest rate using the simple interest formula. This problem demonstrates percentage conversion and basic interest calculations. Suitable for Grades 9-11.

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