Equation: A = P(1 + rt) Calculation: First, converting R percent to r a decimal r = R/100 = 5.5%/100 = 0.055 per year, putting time into years for simplicity, 1 quarters ÷ 4 quarters/year = 0.25 years, then, solving our equation
A = 850(1 + (0.055 × 0.25)) = 861.6875 A = $ 861.69
The total amount accrued, principal plus interest, from simple interest on a principal of $ 850.00 at a rate of 5.5% per year for 0.25 years (1 quarters) is $ 861.69.
