Answer:
$793.80
Step-by-step explanation:
You want to calculate the interest on $630 at 6.5% interest per year after 4 year(s).
The formula we'll use for this is the simple interest formula, or:
<em>I = P x r x t</em>
<em>Where:
</em>
<em>
</em>
<em>P is the principal amount, $630.00.
</em>
<em>r is the interest rate, 6.5% per year, or in decimal form, 6.5/100=0.065.
</em>
<em>t is the time involved, 4....year(s) time periods.
</em>
<em>So, t is 4....year time periods.
</em>
<em>To find the simple interest, we multiply 630 × 0.065 × 4 to get that:
</em>
<em>
</em>
<em>The interest is: $163.80
</em>
<em>Usually now, the interest is added onto the principal to figure some new amount after 4 year(s),
</em>
<em>or 630.00 + 163.80 = 793.80. For example:
</em>
<em>
</em>
<em>If you borrowed the $630.00, you would now owe $793.80
</em>
<em>If you loaned someone $630.00, you would now be due $793.80
</em>
<em>If owned something, like a $630.00 bond, it would be worth $793.80 now.</em>
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