Question

$4.000 at 3% for 4 yearsSolve using simple interest to find the ending balance

Answer 1

Given:

The principal, P=$ 4,000.

Interest rate, r = 3% =0.03.

The period of time, t = 4 years.

Required:

We need to find the ending balance.

Step-by-step explanation:

Consider the simple interest formula to find the end balance.

`A=P(1+rt)`

Substitute P=4000, r =0,03 and t =4 in the formula.

`A=4000(1+0.03*4)`

`A=4000*1.12`
`A=4480`

Final answer:

The ending balance is $ 4,480.