I need help figuring out simple interest and the balance of an account. Example P = $525, r = 6%, t + 9 years
To calculate simple interest and the balance of an account, you need to use the formula:
Simple Interest = Principal (P) x Interest Rate (r) x Time (t)
The Principal (P) represents the initial amount of money. In your example, the Principal is $525.
The Interest Rate (r) is given as 6%. However, when using the formula, it needs to be converted to a decimal. So, 6% is equivalent to 0.06.
The Time (t) represents the number of years. In your example, the Time is 9 years.
Using these values, we can calculate the Simple Interest as follows:
Simple Interest = $525 x 0.06 x 9
To find the balance of the account, you need to add the Simple Interest to the Principal:
Balance = Principal + Simple Interest
Therefore, the Balance of the account can be calculated as:
Balance = $525 + ($525 x 0.06 x 9)
Simplifying the equation:
Balance = $525 + ($283.50)
Balance = $808.50
So, the Balance of the account after 9 years with a Principal of $525 and an annual interest rate of 6% is $808.50.