Answer:
A = $1,025.00
I = A - P = $25.00
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,
6 months / 12 months/year = 0.5 years.
Solving our equation:
A = 1000(1 + (0.05 × 0.5)) = 1025
A = $1,025.00
The total amount accrued, principal plus interest, from simple interest on a principal of $1,000.00 at a rate of 5% per year for 0.5 years (6 months) is $1,025.00.
