Answer:
A = $9,760.00
Step-by-step explanation:
I = A - P = $1,937.50
Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 3.875%/100 = 0.03875 per year.
Solving our equation:
A = 10000(1 + (0.03875 × 5)) = 11937.5
A = $11,937.50
The total amount accrued, principal plus interest, from simple interest on a principal of $10,000.00 at a rate of 3.875% per year for 5 years is $11,937.50.
