Question

$7.400 at 10.5% for 1/4 yearsTo find the ending balance from the equation given using simple interest

Answer 1

Answer:
`The\text{ ending balance = \$7594.25}`

Step-by-step explanation:

Given:

$7.400 at 10.5% for 1/4 years

To find:

The ending balance from the equation given using simple interest

The ending balance here the total amount that will be gotten after the duration of 1/4 years

Using simple interest formula:

`\begin{gathered} \text{I = PRT} \\ I\text{ = interest = ?} \\ P\text{ = principal = \$7400} \\ R\text{ = rate = 10.5\% = 0.105} \\ T\text{ = time = }(1)/(4)year \end{gathered}`

substitute the values in the formula:

`\begin{gathered} I\text{ = 7400 }*\text{ 0.105 }*\text{ }(1)/(4) \\ \\ I=\text{ 194.25} \end{gathered}`

The ending balance = Interest + Principal

`\begin{gathered} The\text{ ending balance = 194.25 + 7400} \\ \\ The\text{ ending balance = \$7594.25} \end{gathered}`