Calculate the balance after two years for the following account. account balance: $1,500.00 interest: 3.5% type of account: annual compound interest

= $ 1,605.00

Equation:

A = P (1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 3.5%/100 = 0.035 per year,

then, solving our equation

A = 1500 (1 + (0.035 * 2)) = 1605

A = $ 1,605.00

The total amount accrued, principal plus interest,

from simple interest on a principal of $ 1,500.00

at a rate of 3.5% per year

for 2 years is $ 1,605.00.