A = $756.00
(I = A - P = $56.00)
Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 4%/100 = 0.04 per year.
Solving our equation:
A = 700(1 + (0.04 × 2)) = 756
A = $756.00
The total amount accrued, principal plus interest, from simple interest on a principal of $700.00 at a rate of 4% per year for 2 years is $756.00.
