Question

Use simple interest to find the ending balance:$25,500 at 6.1% for 8 1/2 yearsA. $38,721.75B. $13,221.75C. $27,055.50D. $42,181.40

Answer 1

Given:

P= $ 25500

R=6.1 %

T=8 1/2

Consider

The formula for finding amount with simple interest is

`A=p(1+rt)`

Substitute p=255500, r=6.1/100 and t=8.5, we get

`A=25500(1+(6.1)/(100)*8.5)`

`A=25500*1.5185`

`A=38721.75`

Hence the ending balance is $ 38,721.75.