Question

Find the ending balance by using simple interest$1,900 at 5.9% for 2 and three fourths years

Answer 1

In general, the simple interest formula is

`\begin{gathered} A=P(1+rt) \\ P\rightarrow\text{ initial amount} \\ r\rightarrow\text{ annual interest rate} \\ t\rightarrow\text{ number of years} \end{gathered}`

Thus, in our case,

`P=1900,r=5.9\%=0.059,t=2.75`

Therefore, finding A,

`\begin{gathered} \Rightarrow A=1900(1+0.059*2.75) \\ \Rightarrow A=2208.275 \end{gathered}`

The exact answer is $2208.275