suppose that you borrow $12000 for 4 years at 6% towards the purchase of a car. use pmt to find the monthly payments and the tot
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Answer:
Given: Principal(P) = $ 5000 , T = 3.5 years and R = 5%.
Using the formula of Simple Interest (I) given by;
.......[1] , where P is the Principal amount of money to be invested, R be the rate of interest and T be the time.
Substitute the given values of P , R and T in [1] we have;
Simplify:
An Ending balance is calculated by subtracting cash outflows, interest paid for financing and principal paid on financing.
Ending Balance = $ 5000 + $ 175 = $ 5,175.
Therefore, the ending balance is $ 5,175