If the value of the principal today is $25,000 and the interest rate is 22.5%,what is the value of the principal at the end of one year?
A)$5,625
B)$30,250
C)$5,825
D)$30,625
E)None of the above.

Question

Quizplus · Accepted Answer

The interest rate is given as 22.5%, which means for every $100 of the principal, $22.50 is added as interest.

So, for a principal of $25,000, the interest earned in one year would be:

$22.50 x 250 = $5,625

Therefore, the value of the principal at the end of one year would be:

Principal + Interest = $25,000 + $5,625 = $30,625

Hence, the correct answer is (D) $30,625.

If the Value of the Principal Today Is $25,000 and the Interest