Question

1.) A man invested $600 at 8% per annum for 5 years. Calculate: a.) The simple interest payable b.) The total amount of money the man collected at the end of the 5-year period. 2.) Mr. Ford invested $12 450 in a bank at 7.25% per annum simple interest for 6 years. Calculate: a.) The interest he was paid b.) The total of amount of money he would have received at the end of the period of investment. 3.) The simple on $15 000 for 9 years is interest is paid when $800 is invested for 5 years.

Answer 1

Following are the solution to this question:

Explanation:

Using formula:

`\text{Simple Interest} = (P * R * T)/(100) \\\\\text{ Total amount} = \text{principle}+ \text{Simple Interest}`

In question (1):

`Principle= \$ 600\\Rate = \ 8 \%\\Time= \ 5`

In point a:

`\to (P * R * T)/(100) \\\\\to ((600 * 8 * 5))/(100)\\\\ \to 240`

In point b:

`\to amount = principle \ +\ simple \ interest`

`= 600 + 240 \\\\= 840`

In question (2):

`Principle= \$ 12,450\\Rate = \ 7.25 \%\\Time= \ 6`

In point a:

`\to (P * R * T)/(100) \\\\\to ((12,450 * 7.25 * 6))/(100)\\\\ \to 5,415.75`

In point b:

`\to amount = principle \ +\ simple \ interest`

`= 12,450 + 5,415.75 \\\\= 17,865.75`

The 3 question is incomplete, that's why it can't be solved.