Question

Use the simple interest formula to find the ending balance.

$4000 at 6.5% for 5 years.

Enter your answer in the box below.

Answer 1

5300

Explanation:

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Answer 2

Explanation:

The simple interest formula is: A = P( 1 + rt )

A = final amount

P = initial principal balance

r = interest rate

t = time periods

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To solve, plug in the numbers into the variables:

$4000 at 6.5% for 5 years

P = $4000

r = 6.5% or 0.065

t = 5

So: A = 4000( 1 + (0.065 × 5))

A = 4000( 1 + 0.325)

A = 4000(1.325)

A = 5300

Hope it helped!