Answer:
$1,462.50
Step-by-step explanation:
We are to find the total amount after 4 years
Principal => $1,250
Rate => 4.25%
The formula to find the total amount =
A = P(1 + rt)
First, converting R percent to r a decimal
r = R/100 = 4.25%/100 = 0.0425 per year.
Solving our equation:
A = 1250(1 + (0.0425 × 4)) = 1462.5
A = $1,462.50
The total amount accrued, principal plus interest, from simple interest on a principal of $1,250.00 at a rate of 4.25% per year for 4 years is $1,462.50.
