Answer:
$4,218.75
Step-by-step explanation:
The formula for computing simple interest I on a principal amount P for t years at an interest rate of R% is given by
I = Prt
The ending balance amount is found by adding the principal to the interest computed
Ending balance = P + I
Here r is the interest rate in % converted to a decimal. This is done by dividing by 100
r = R/100 = 2.75%/100 = 0.0275 per year
I = 2500 x 0.0275 x 25 = 1718.75
So interest I = $1718.75
Ending balance = $2,500 + $1718.75 = $4,218.75
