= $ 32,275.00
Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 4.85%/100 = 0.0485 per year,
putting time into years for simplicity,
24 quarters ÷ 4 quarters/year = 6 years,
then, solving our equation
A = 25000(1 + (0.0485 × 6)) = 32275
A = $ 32,275.00
The total amount accrued, principal plus interest,
from simple interest on a principal of $ 25,000.00
at a rate of 4.85% per year
for 6 years (24 quarters) is $ 32,275.00.
