Question

#1 - HINT - you are finding the total amount make sure you add the interest you calculate to the original deposit amount

Answer 1

Your Answer Should Be: A=$292.50

Answer 2

$292.50

Explanation:

Equation - A = P(1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 2.5%/100 = 0.025 per year.

Solving our equation:

A = 260(1 + (0.025 × 5)) = 292.5

A = $292.50

The total amount accrued, principal plus interest, from simple interest on a principal of $260.00 at a rate of 2.5% per year for 5 years is $292.50.