Answer:
First find the total interest using Simple interest formula.
Given: The Sum(P) =$4,000, Rate (R%) = 6.5% and Time(T)=5 years.
To,calculate the total interest (S.I) on a principle amount (P) at a certain rate per annum (R), after a certain years of time(T) is calculated using formula:
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Substitute the values of P, R and T in above formula to solve for total interest;
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Simplify:
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Therefore, the total interest is, $1300
hence, the ending balance = P+S.I = $4000+$1300 = $5300.
