Question

$26.000 at 7.5% for 5 years. Solve for the final amount.

a. $34,760
b. $34,250
c. $36,520
d. $36,250

Answer 1

To solve for the final amount, use the formula A = P(1 + rt), where P is the principal amount, r is the interest rate, and t is the time period. Plugging in the values and solving gives a final amount of $34,250.

Step-by-step explanation:

To solve for the final amount, we can use the formula for calculating simple interest:

A = P(1 + rt)

Where:

• A is the final amount
• P is the principal amount ($26,000 in this case)
• r is the interest rate (7.5% as a decimal, which is 0.075)
• t is the time period (5 years)

Plugging in the values, we get:

A = 26,000(1 + 0.075 * 5) = 34,250

So the final amount is $34,250. Therefore, the correct answer is b. $34,250.