Answers are in bold:
b:) Answer:
A = $853.13
(I = A - P = $103.13)
Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 2.75%/100 = 0.0275 per year.
Solving our equation:
A = 750(1 + (0.0275 × 5)) = 853.125
A = $853.13
The total amount accrued, principal plus interest, from simple interest on a principal of $750.00 at a rate of 2.75% per year for 5 years is $853.13.
c: Answer:
A = $1,450.00
(I = A - P = $450.00)
Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 4.5%/100 = 0.045 per year.
Solving our equation:
A = 1000(1 + (0.045 × 10)) = 1450
A = $1,450.00
The total amount accrued, principal plus interest, from simple interest on a principal of $1,000.00 at a rate of 4.5% per year for 10 years is $1,450.00.
d: Answer:A = $1,626.60
(I = A - P = $426.60)
Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 3.95%/100 = 0.0395 per year.
Solving our equation:
A = 1200(1 + (0.0395 × 9)) = 1626.6
A = $1,626.60
The total amount accrued, principal plus interest, from simple interest on a principal of $1,200.00 at a rate of 3.95% per year for 9 years is $1,626.60.