Use the simple interest formula to find the ending balance.
initial balance of $4000 at 6.5% interest for 5 years
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Answered by
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Answer:
Write the formula.
I
=
P
r
t
Substitute the given information. Remember to write the percent in decimal form.
I
=
(
500
)
(
0.06
)
(
3
)
Simplify.
I
=
90
Check your answer. Is
$90
a reasonable interest earned on
$500
in
3
years?
In
3
years the money earned
18
%
. If we rounded to
20
%
, the interest would have been
500
(
0.20
)
or
$100
. Yes,
$90
is reasonable.
Write a complete sentence that answers the question. The simple interest is
$90
.
hpcdac2573:
you
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