Question

Use the simple interest formula to find the ending balance. $4000 at 6.5% for 5 years. Enter your answer in the box.

Answer 1

it is $5300 hope this helped

Answer 2

First find the total interest using Simple interest formula.

Given: The Sum(P) =$4,000, Rate (R%) = 6.5% and Time(T)=5 years.

To,calculate the total interest (S.I) on a principle amount (P) at a certain rate per annum (R), after a certain years of time(T) is calculated using formula:

`S.I = (P* R* T)/(100)`

Substitute the values of P, R and T in above formula to solve for total interest;

`S.I = (4000* 6.5* 5)/(100)=(4000* 65* 5)/(1000)`

Simplify:

`S.I = 4 * 65 * 5` = $ 1300

Therefore, the total interest is, $1300

hence, the ending balance = P+S.I = $4000+$1300 = $5300.