Answer:$1,942.50
Step-by-step explanation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 2.5%/100 = 0.025 per year.
Solving our equation:
A = 1850(1 + (0.025 × 2)) = 1942.5
A = $1,942.50
The total amount accrued, principal plus interest, from simple interest on a principal of $1,850.00 at a rate of 2.5% per year for 2 years is $1,942.50.
