math help please advise

Question

An accountant invested $7500 at a simple interest rate of 6 ½ % for 5 years. What total amount of money will she have from her investment?

Answer 1

So, for simple interest rates, you're going to be using a formula to calculate the amount of interest accrued on the investment/borrowed amount.

The simple interest formula is I = P x r x t, simplifying to..

I = Principal x Interest Rate x Time

= 7500 x 0.065 x 5

= $2,437.50 in interest, giving you a total of $9,937.50 in the account when added back onto our original principal amount.