# Accumulate 3,200 for 2 years and 6 months at 5 1/2% simple discount.

## P = Po + Po*r*t = $3,200

Po + Po*0.055*2.5 = 3200

Solve for Po, the initial principal or

investment.

## To calculate the simple discount, we'll first find the discount amount and then subtract it from the initial amount.

Step 1: Calculate the discount amount:

Discount = Principal x Rate x Time

Principal = $3,200

Rate = 5 1/2% = 5.5%

Time = 2 years + 6 months = 2.5 years

Discount = $3,200 x 5.5% x 2.5

Discount = $3,200 x 0.055 x 2.5

Discount = $440

Step 2: Calculate the final amount after the discount:

Final amount = Principal - Discount

Final amount = $3,200 - $440

Final amount = $2,760

Therefore, the final amount after the simple discount of 5 1/2% for 2 years and 6 months on an initial amount of $3,200 would be $2,760.

## To calculate the accumulated amount after 2 years and 6 months at a simple discount rate of 5 1/2%, you can follow these steps:

1. Convert the given discount rate to decimal form:

5 1/2% = 5.5/100 = 0.055

2. Determine the simple discount for the given time period:

Simple Discount = Principal Amount * Discount Rate * Time

Given:

Principal Amount = $3,200

Discount Rate = 0.055 (as calculated in step 1)

Time = 2 years and 6 months

To convert the time to years:

6 months = 6/12 = 0.5 years

Time = 2 years + 0.5 years = 2.5 years

Simple Discount = $3,200 * 0.055 * 2.5 = $440

3. Calculate the accumulated amount after the discount:

Accumulated Amount = Principal Amount - Simple Discount

Accumulated Amount = $3,200 - $440 = $2,760

Therefore, the accumulated amount after 2 years and 6 months at a 5 1/2% simple discount is $2,760.