Question

Using simple interest, find the ending balance of the following problem.$210 invested a 2% for 7 yearsEnding Balance =

Answer 1

Given :

principlal (P) = $210

interest rate (R) = 2%

period (T) = 7 years

Required :

Ending balance =?

The formula for simple interest (S.I)

`S\mathrm{}I\text{ = }\frac{P\text{ }*\text{ R }*\text{ T}}{100}`

When we substitute, we have:

`\begin{gathered} SI\text{ = }\frac{210\text{ }*\text{ 2 }*\text{ 7}}{100} \\ =\text{ \$ 29.4} \end{gathered}`

To find the ending balance, we use the formula:

`\text{Ending balance = Principal + SI}`

Hence:

`\begin{gathered} \text{Ending balance = \$ 210 + \$ 29.4} \\ =\text{ \$ 239.4} \end{gathered}`