taylorself2014
Answered

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Find the ending
balance:
$2,500 for 25 years at
2.75% annual simple
interest
Show work

Sagot :

rvkacademic

Answer:

$4,218.75

Step-by-step explanation:

The formula for computing simple interest I on a principal amount P for t years at an interest rate of R% is given by

I = Prt

The ending balance amount is found by adding the principal to the interest computed

Ending balance = P + I

Here r is the interest rate in % converted to a decimal. This is done by dividing by 100

r = R/100 = 2.75%/100 = 0.0275 per year

I = 2500 x 0.0275 x 25 = 1718.75

So interest I = $1718.75

Ending balance = $2,500 + $1718.75 = $4,218.75

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