Question

Part 2 Assignment (6 problems)

Use simple interest to find the ending balance!
1. If I invest $210 at 8% for 7 years. What is my ending balance?
Answer:
I
2. If I invest $14,000 at 6% for 9 years. What is my ending balance?
Answer:
3. If I invest $1,900 at 5.9% for 2.75 years. What is my ending balance?
Answer:​

Answer 1

1. $327.60

2. $21,560.00

3. $2,208.28

Explanation:

The formula for simple interest is:

I = Prt

Shows us;

I = amount of interest

P = principal amount

r = annual interest rate

t = number of years

Calculating Present and Future value investments to find the balance;

F = P + Prt

F = P(1 + rt)

1.

F = P(1 + rt)

F = $210(1+ (0.08 * 7)

F = $327.60

2.

F = P(1 + rt)

F = $14,000(1+ (0.06 * 9)

F = $21,560.00

3.

F = P(1 + rt)

F = $1,900(1+ (0.059 * 2.75)

F = $2,208.28

Answer 2

1. $327.60

2. $21,560.00

3. $2,208.28

Explanation:

The formula for simple interest is:

I = Prt

where

I = amount of interest

P = principal amount

r = annual interest rate

t = number of years

The total future amount after earning simple interest is the principal polus the interest.

F = P + Prt

F = P(1 + rt)

1.

F = P(1 + rt)

F = $210(1 + 0.08 * 7)

F = $327.60

2.

F = P(1 + rt)

F = $14,000(1 + 0.06 * 9)

F = $21,560.00

3.

F = P(1 + rt)

F = $1,900(1 + 0.059 * 2.75)

F = $2,208.28