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4 years ago

6

Use the simple interest formula to find the ending balance.

1 answer:

Inga [223]4 years ago

6 0

Answer:

Step-by-step explanation:

The simple interest formula is: A = P( 1 + rt )

A = final amount

P = initial principal balance

r = interest rate

t = time periods

----------

To solve, plug in the numbers into the variables:

$4000 at 6.5% for 5 years

P = $4000

r = 6.5% or 0.065

t = 5

So: A = 4000( 1 + (0.065 × 5))

A = 4000( 1 + 0.325)

A = 4000(1.325)

A = 5300

Hope it helped!

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