Answer:
The simple interest is of 526.
The total amount is 3156.
Step-by-step explanation:
Simple Interest
This is a simple interest problem.
The simple interest formula is given by:
[tex]E = P*I*t[/tex]
In which E is the amount of interest earned, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.
After t years, the total amount of money is:
[tex]T = E + P[/tex]
In this question, we have that:
[tex]P = 2630, I = 0.08, t = 2.5[/tex]
The simple interest is:
[tex]E = P*I*t = 2630*0.08*2.5 = 526[/tex]
The simple interest is of 526.
The total amount is:
[tex]T = E + P = 2630 + 526 = 3156[/tex]
The total amount is 3156.
