Answer:
I = $ 1,937.50
Step-by-step explanation:I = $ 1,937.50
Equation:
I = Prt
Calculation:
First, converting R percent to r a decimal
r = R/100 = 3.875%/100 = 0.03875 per year,
then, solving our equation
I = 10000 × 0.03875 × 5 = 1937.5
I = $ 1,937.50
The simple interest accumulated
on a principal of $ 10,000.00
at a rate of 3.875% per year
for 5 years is $ 1,937.50.
