Answer
annual interest is 6.25%
Step-by-step
First, converting R percent to r a decimal
r = R/100 = 6.25%/100 = 0.0625 per year.
Solving our equation:
A = 800(1 + (0.0625 × 2)) = 900
A = $900.00
The total amount accrued, principal plus interest, from simple interest on a principal of $800.00 at a rate of 6.25% per year for 2 years is $900.00.
