Question

An account earns simple interest. $5200 at 7.36% for 54 months. Find the interest earned. Find the balance of the account

Answer 1

$1722.24 would be the interest earned and $6922.24 is the total balance 

Answer 2

Interest earned=$ 1722.24

New Balance of account=$6922.24

Explanation:

An account earns simple interest.

$5200 at 7.36% for 54 months.

The principal account (P) =$5200

R=7.36%

T=54 months=54/12 year=4.5 year.

Hence, simple interest(I) is calculated as:

`I=(P* R* T)/(100)\\\\I=(5200* 7.36* 4.5)/(100)\\\\I=\$ 1722.24`

Hence, interest earned=$ 1722.24

Hence, the new balance of the account is:

P+I

=5200+1722.24

=$ 6922.24.

Hence new balance of account=$ 6922.24