Answer: A = $4,830.00
(I = A - P = $2,530.00)
Step-by-step explanation:
Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 5.5%/100 = 0.055 per year.
Solving our equation:
A = 2300(1 + (0.055 × 20)) = 4830
A = $4,830.00
The total amount accrued, principal plus interest, from simple interest on a principal of $2,300.00 at a rate of 5.5% per year for 20 years is $4,830.00.
