Question

Use simple interest to find the ending balance. Round to the nearest cent when necessary. $215 at 8% for 8 years,

Answer 1

The formua for determining simple interest interest is expressed as

I = PRT/100

where

I = interest

P = principal or initial amount

R = interest rate

T = number of years

From the information given,

P = 215

T = 8

R = 8

I = (215 x 8 x 8)/100 = 137.6

The ending balance after 8 years = principal + intereest

Ending balance = 215 + 137.6 = $352.6