\( \$ 500 \) at \( 4.7 \% \) for \( 2 \frac{1}{2} \) years

To calculate the total amount accumulated from an investment of \( \$ 500 \) at an interest rate of \( 4.7\% \) for \( 2 \frac{1}{2} \) years, you can use the formula for simple interest, which is: \[ A = P(1 + rt) \] Where \( A \) is the total amount, \( P \) is the principal amount (initial investment), \( r \) is the annual interest rate (in decimal), and \( t \) is the time in years. Here’s how it looks with your numbers: - \( P = 500 \) - \( r = \frac{4.7}{100} = 0.047 \) - \( t = 2.5 \) years Substituting in the values: \[ A = 500(1 + 0.047 \times 2.5) \] \[ A = 500(1 + 0.1175) \] \[ A = 500(1.1175) \] \[ A = 558.75 \] So, after \( 2 \frac{1}{2} \) years, your total amount would be \( \$ 558.75 \). Saving money and investing over time can have remarkable benefits! Investing your savings, even with a modest interest rate, can significantly boost your financial health. By understanding compound interest or even choosing the right type of savings accounts, you can harness money to work for you. Being aware of common mistakes when calculating interest can save you from misinformation. One frequent error is neglecting to convert percentages properly or miscalculating the time frame! Always double-check that you've correctly aligned your interest rates and time periods for precise calculations.