Question

A principal of N1000 is invested at an 8% annual rate of interest. What will be the accrued interest after 6 years?

Answer 1

480.

Explanation:

We have been given that a principal of 1000 is invested at an 8% annual rate of interest.

To find the amount of interest after 6 years, we will use simple interest formula.

`I=Prt`, where,

I = Amount of interest,

P = Principal amount,

r = Annual interest rate in decimal form,

t = Time in years.

`8\%=(8)/(100)=0.08`

Upon substituting the given values, we will get,

`I=1000*0.08*6`

`I=1000*0.48`

`I=480`

Therefore, the amount of interest would be 480.