Equation: A = P(1 + rt) Calculation: First, converting R percent to r a decimal r = R/100 = 4.85%/100 = 0.0485 per year, putting time into years for simplicity, 24 quarters ÷ 4 quarters/year = 6 years, then, solving our equation
A = 25000(1 + (0.0485 × 6)) = 32275 A = $ 32,275.00
The total amount accrued, principal plus interest, from simple interest on a principal of $ 25,000.00 at a rate of 4.85% per year for 6 years (24 quarters) is $ 32,275.00.
