Question

Amount to be paid
25460
time
2 2
Rate =
107
Let
and
Р Pi
P2
be the proncipal respectively
(ItR
n ก
A =
и
كي
Pn
100+R
n
P =100
ootlo
fc)
P
(1922
( llo​

Answer 1

Answer:

A = $11,937.50

I = A - P = $1,937.50

Equation:

A = P(1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 3.875%/100 = 0.03875 per year.

Solving our equation:

A = 10000(1 + (0.03875 × 5)) = 11937.5

A = $11,937.50

The total amount accrued, principal plus interest, from simple interest on a principal of $10,000.00 at a rate of 3.875% per year for 5 years is $11,937.50.