A = P415.00
I = A - P = P15.00
Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 5%/100 = 0.05 per year.
Putting time into years for simplicity,
9 months / 12 months/year = 0.75 years.
Solving our equation:
A = 400(1 + (0.05 × 0.75)) = 415
A = P415.00
The total amount accrued, principal plus interest, from simple interest on a principal of P400.00 at a rate of 5% per year for 0.75 years (9 months) is $415.00.
