Answer:
Step-by-step explanation:
The formula for the total accrued amount is
A = P(1 + rt)
Data:
P = $500
r = 6.5 % = 0.065
t = 30 mo
Calculations:
(a) Convert months to years
t = 30 mo × (1 yr/12 mo) = 2.5 yr
(b) Calculate the accrued amount
A = 500(1 + 0.065 × 2.5)
= 500(1 + 0.1625)
= 500 × 1.1625
= 581.25
(c) Calculate the accumulated interest