We have to find the interest amount first. To do this, we find the 1.89% of the initial amount:
[tex]i=125,000.00\times\frac{1.89}{100}=125,000.00\times0.0189=2361.5[/tex]That's the annual interest. If it's add up for 6 years, then the total interest is:
[tex]i_T=i\times6=2,361.5\times6=14,175.00[/tex]Finally we add this total interest to the initial amount:
[tex]b=125,000.00+14,175.00[/tex]The ending balance is $139,175.00
