Answer:
Explanation:
Use the simple interest formula
Where interest = Principal * Rate * Time
A = $1,840.00
I = A - P = $240.00
Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 5%/100 = 0.05 per year.
Solving our equation:
A = 1600(1 + (0.05 × 3)) = 1840
A = $1,840.00
The total amount accrued, principal plus interest, from simple interest on a principal of $1,600.00 at a rate of 5% per year for 3 years is $1,840.00.