5 find the ending balance: $2,500 for 25 years at 2.75% annual simple interest

Explanation:

Step1: Identify the simple - interest formula

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. The ending balance $A$ is given by $A=P + I=P(1 + rt)$.

Step2: Convert the interest rate to decimal form

Given $r = 2.75%=0.0275$, $P=$2500$, and $t = 25$ years.

Step3: Calculate the ending balance

Substitute the values into the formula $A=P(1+rt)$. $A = 2500\times(1+0.0275\times25)$ First, calculate $0.0275\times25 = 0.6875$. Then, $1+0.6875=1.6875$. Finally, $A = 2500\times1.6875=$4218.75$.

Answer:

$4218.75$