Final answer:
The calculation of the simple interest for Company Z's loan of $9,500 at a rate of 5% for one year results in interest of $475.
Step-by-step explanation:
The question requires us to compute the simple interest that accrues at the end of the year (December 31, 2019) for Company Z which borrows $9,500 on February 1, 2019, for two years at an interest rate of 5%. Simple interest can be computed using the formula:
Simple Interest = Principal × Rate × Time
In this case, the Principal (P) is $9,500, the Rate (r) is 5% or 0.05 (as a decimal), and the Time (t) for the interest calculation up to December 31, 2019, is 1 year (since the loan was taken out on February 1, 2019).
Simple Interest = $9,500 × 0.05 × 1
Calculating this gives us:
Simple Interest = $475
Therefore, the simple interest at the end of the year (December 31, 2019) is $475.