Question

Use the simple interest formula to find the ending balance. $5000 at 5% for 3.5 years. Enter your answer in the box. Hurry...

Answer 1

Ending balnace is; $5875

Explanation:

Given: Principal(P) = $5,000 , Rate(R) = 5% and Time(T) = 3.5 years.

Using the simple interest(I) formula:

`I = (P\cdot R\cdot T)/(100)`

Substitute the given values in the formula to calculate interest(I);

`I = (5000 \cdot 5 \cdot 3.5)/(100)`

Simplify:

`I = \$875`

To find the ending balance;

Ending balance is the net residual balance in an account.

Ending Balance = Principal + Interest

=
`5000 + 875 = \$5,875`

Therefore, the ending balance is, $5, 875