Question

100 POINTS! ! !

Answer 1

Answer:

$850.70 (nearest cent)

Step-by-step explanation:

Simple interest formula:   A = P(1 + rt)

where:

• A = final amount
• P = principal (initial balance)
• r = annual interest rate (in decimal form)
• t = time (in years)

Given:

• P = $6,604.80
• r = 3.22% = 0.0322
• t = 4 years

Substituting given values into the formula, and solving to find A:

⇒ A = 6604.8(1 + 0.0322 · 4)

       = 6604.8(1.1288)

       = $7455.50 (nearest cent)

Therefore, to find the amount of interest earned, subtract the principal from the final amount:

⇒ I = A - P

     = 7455.50 - 6604.80

     = $850.70 (nearest cent)

Answer 2

Answer:

$850.69824

Step-by-step explanation:

• simple interest formula : (principal * rate of interest * time)/100

• (6,604.80 * 3.22 * 4)/100

• $850.69824