Answer:
A - 600
B - 3,100
Step-by-step explanation:
Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 1.2%/100 = 0.012 per year.
Solving our equation:
A = 2500(1 + (0.012 × 20)) = 3100
A = $3,100.00
The total amount accrued, principal plus interest, from simple interest on a principal of $2,500.00 at a rate of 1.2% per year for 20 years is $3,100.00.
