Your answer would be:
Formula: I = P * r * t
P = Principle $5000
R = Rate 2.5% per year, or in decimal form, 2.5/100 =0.025
T = Time involved 7 years time period
I = Interest
Part A:
P = 5000
R = 2.5%, or .025
Part B: Riley To find the simple interest, we multiply
I = 5000 * 0.025 * 7
T = 7
The Interest is = $875.00
Part C: Investment Balance = Investment + Interest
Usually the interest is added onto the principal t figure out the new amount after 7 years.
= $5000.00 + $875
= $5875.00
Ex. if you borrowed $5000, you would now owed $5875.00
Hope that helps!!!
