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What is the simple interest earned on an $4,350 investment for 5 years at a rate of 2%?

User Higty
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1 Answer

3 votes

Hey!

A = $4,785.00

I = A - P = $435.00

Equation:

A = P(1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 2%/100 = 0.02 per year.

Solving our equation:

A = 4350(1 + (0.02 × 5)) = 4785

A = $4,785.00

The total amount accrued, principal plus interest, from simple interest on a principal of $4,350.00 at a rate of 2% per year for 5 years is $4,785.00.

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Hope you have a great day and this helped in some way <33

User Diego Ramos
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