Answer: [tex]The\text{ ending balance = \$7594.25}[/tex]
Explanation:
Given:
$7.400 at 10.5% for 1/4 years
To find:
The ending balance from the equation given using simple interest
The ending balance here the total amount that will be gotten after the duration of 1/4 years
Using simple interest formula:
[tex]\begin{gathered} \text{I = PRT} \\ I\text{ = interest = ?} \\ P\text{ = principal = \$7400} \\ R\text{ = rate = 10.5\% = 0.105} \\ T\text{ = time = }\frac{1}{4}year \end{gathered}[/tex]
substitute the values in the formula:
[tex]\begin{gathered} I\text{ = 7400 }\times\text{ 0.105 }\times\text{ }\frac{1}{4} \\ \\ I=\text{ 194.25} \end{gathered}[/tex]
The ending balance = Interest + Principal
[tex]\begin{gathered} The\text{ ending balance = 194.25 + 7400} \\ \\ The\text{ ending balance = \$7594.25} \end{gathered}[/tex]
