Question

Simple Interest QuizIf $3,000 is loaned for 48 months at a 4.5% annual rate, how much is the ending balance?

Answer 1

Given:

Principal (p) =$3,000

Time (T) = 48 months = 4 years

Interest rate = 4.5%

Required :

Ending balance = ?

The simple interest :

`\begin{gathered} SI\text{ = PRT} \\ =\text{ 3000 }*\text{ 0.045 }*\text{ 4} \\ =\text{ \$ 540} \end{gathered}`

Ending balance :

`\begin{gathered} \text{Ending balance = Principal + SI} \\ =\text{ \$ 3000 + \$ 540} \\ =\text{ \$ 3540} \end{gathered}`

Ending balance = $ 3540