Answer:
$2,152.50
Explanation:
A = $2,152.50
I = A - P = $652.50
Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 8.7%/100 = 0.087 per year.
Solving our equation:
A = 1500(1 + (0.087 × 5)) = 2152.5
A = $2,152.50
The total amount accrued, principal plus interest, from simple interest on a principal of $1,500.00 at a rate of 8.7% per year for 5 years is $2,152.50.