Question

Leo invests $2,000 loses money at a rate of 4%. How much is the investment worth in total at the end of 3 years? Round to the nearest cent.

Answer 1

Leo's investment is worth $1,760 at the end of 3 years

Explanation:

Simple Interest

Leo invests $2,000 and loses money at a rate of 4% (yearly),

It's required to find the value of his money at the end of 3 years.

Since Leo losses 4% per year, the amount lost per year is:

$2,000*4/100=$80

For three years, he loses 3*$80 = $240

Thus, his money is worth:

$2,000 - $240 = $1,760

Leo's investment is worth $1,760 at the end of 3 years