Question

Do not round any intermediate computation, and round your final answer to the nearest cent.

Answer 1

Case: Simple interest

Method:

P= $5100

R= 6.5% or 0.065 annual rate

T= 365 days.

1. The formula for simple Interest is:

`I=PRT`

Therefore:

`\begin{gathered} I=5100*0.065*(365)/(365) \\ I=331.50 \end{gathered}`

The Interest, I= $331.50

2. The Amount, A

`\begin{gathered} A=P+I \\ A=5100+331.50 \\ A=5431.50 \end{gathered}`

The Amount A= $5431.50