Formula: I = P * r * t P = Principle $5000 R = Rate 2.5% per year, or in decimal form, 2.5/100 =0.025 T = Time involved 7 years time period I = Interest
Part A: P = 5000 R = 2.5%, or .025
Part B: Riley To find the simple interest, we multiply I = 5000 * 0.025 * 7 T = 7 The Interest is = $875.00
Part C: Investment Balance = Investment + Interest Usually the interest is added onto the principal t figure out the new amount after 7 years. = $5000.00 + $875 = $5875.00
Ex. if you borrowed $5000, you would now owed $5875.00
