Marissa wants to know how much she would make using the simple interest calculation.
She will have $4,432.35
Given data
Principal = $3,900
Time = 7 years 6 months = 7.5 years
Rate = 1.82%
I = A - P = $532.35
Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 1.82%/100 = 0.0182 per year.
Solving our equation:
A = 3900(1 + (0.0182 × 7.5)) = 4432.35
A = $4,432.35
The total amount accrued, principal plus interest, from simple interest on a principal of $3,900.00 at a rate of 1.82% per year for 7.5 years is $4,432.35.
Learn more about simple interest here:
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