Question

Calculate the simple interest and find the new balance on a principal of $575 deposited at 6.5% for a period of 10 years round the the nearest cent

Answer 1

Explanation:

The simple interest can be calculated using the formula:

I = P * r * t

where:

P = principal amount = $575

r = annual interest rate = 6.5% = 0.065

t = time period = 10 years

I = 575 * 0.065 * 10

I = $373.75

The new balance can be found by adding the interest to the principal:

New balance = Principal + Interest

New balance = $575 + $373.75

New balance = $948.75

Rounded to the nearest cent, the new balance is $948.75.