Question
\( 1 \leftarrow \begin{array}{l}\text { Calculate the simple interest and the final balance. } \\ \text { Principal } \\ \$ 500\end{array} \) The simple of Interest The final balance is \( \$ \square \).
Ask by Kelley Moran. in the United States
Feb 13,2025
Real Tutor Solution
Tutor-Verified Answer
Answer
The simple interest is $50, and the final balance is $550.
Solution
To calculate the simple interest and the final balance, we can use the formula for simple interest:
\[ \text{Simple Interest} = \frac{P \times R \times T}{100} \]
Where:
- \( P \) is the principal amount (initial amount borrowed or invested)
- \( R \) is the rate of interest (in percentage)
- \( T \) is the time period (in years)
Given:
- Principal amount (\( P \)) = $500
- Rate of interest (\( R \)) = 10% (assuming 10% interest rate)
- Time period (\( T \)) = 1 year
Let's calculate the simple interest and the final balance.
Calculate the value by following steps:
- step0: Calculate:
\(\frac{500\times 10\times 1}{100}\)
- step1: Multiply the numbers:
\(\frac{5000}{100}\)
- step2: Reduce the fraction:
\(50\)
The simple interest is $50.
To find the final balance, we add the simple interest to the principal amount:
Final balance = Principal amount + Simple interest
Final balance = $500 + $50
Final balance = $550
Therefore, the final balance is $550.
Reviewed and approved by the UpStudy tutoring team
Like
error msg
Explain 
Simplify this solution Bonus Knowledge
To calculate simple interest, you can use the formula \( I = P \times r \times t \), where \( I \) is the interest, \( P \) is the principal, \( r \) is the rate of interest, and \( t \) is the time in years. For example, if the interest rate is 5% (or 0.05) and the time is 3 years, then \( I = 500 \times 0.05 \times 3 = 75 \). The final balance would be the principal plus the interest: \( 500 + 75 = 575 \). So, the final balance is \( \$ 575 \).
