Question

calculate the balance after two years for the following account. account balance: $1,500.00 interest: 3.5% type of account: annual compound interest

Answer 1

= $ 1,605.00

Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 3.5%/100 = 0.035 per year,
then, solving our equation

A = 1500(1 + (0.035 × 2)) = 1605
A = $ 1,605.00

The total amount accrued, principal plus interest,
from simple interest on a principal of $ 1,500.00
at a rate of 3.5% per year
for 2 years is $ 1,605.00.