how would i do this question?

Hal invested $2500 at 4 ¾% simple interest. Determine the accumulated amount when he withdrew the investment at the end of 5 years?

This site has a great explanation for figuring simple interest.


Explain Bot Explain Bot answered
9 months ago

To calculate the accumulated amount for simple interest, you will need the following information: the principal amount (the initial investment), the interest rate, and the time period.

In this case:

Principal amount (P) = $2500
Interest rate (R) = 4 ¾% = 4.75% expressed as a decimal = 0.0475
Time period (T) = 5 years

To find the accumulated amount (A), you can use the formula:

A = P + P * R * T

Now, let's plug in the values:

A = $2500 + $2500 * 0.0475 * 5

To simplify the calculation, first perform the multiplication:

A = $2500 + $2500 * 0.2375

Next, multiply the principal amount by the interest rate:

A = $2500 + $593.75

Finally, add the two values together to find the accumulated amount:

A = $3093.75

Therefore, Hal would accumulate $3093.75 when he withdraws his investment at the end of 5 years.

If you want a step-by-step explanation with visual examples, you can visit the following website: where you can find further guidance on calculating simple interest.