Final answer:
To find the ending balance of an account with a $5000 initial deposit at 5% simple interest rate over 3.5 years, calculate the interest ($875) and add it to the initial principal. The ending balance is $5875.
Step-by-step explanation:
The student is asking to calculate the ending balance of an account with an initial balance of $5000 that earns 5% simple interest annually for 3.5 years. The formula to calculate simple interest is:
Interest = Principal × rate × time
Using the values given:
- Principal (P) = $5000
- Rate (R) = 5% or 0.05
- Time (T) = 3.5 years
The interest earned can be calculated as follows:
Interest = $5000 × 0.05 × 3.5 = $875
To find the ending balance, we add the interest earned to the initial principal:
Ending balance = Principal + Interest = $5000 + $875 = $5875
Therefore, the account will have an ending balance of $5875 after 3.5 years with a 5% simple interest rate.