Question

Which choice best represents the balance of a savings account at the end of 6 years if the simple interest earned each year is 6.5% and the principal is $1,300?

Answer 1

$507.00.

Explanation:

First, converting R percent to r a decimal

r = R/100 = 6.5%/100 = 0.065 per year,

then, solving our equation

I = 1300 × 0.065 × 6 = 507

I = $ 507.00

The simple interest accumulated

on a principal of $ 1,300.00

at a rate of 6.5% per year

for 6 years is $ 507.00.