Answer:105.00
A = $105.00
I = A - P = $5.00
Equation:
A = P(1 + rt)
First, converting R percent to r a decimal
r = R/100 = 0.5%/100 = 0.005 per year.
Solving our equation:
A = 100(1 + (0.005 × 10)) = 105
A = $105.00
The total amount accrued, principal plus interest, from simple interest on a principal of $100.00 at a rate of 0.5% per year for 10 years is $105.00.
