Investment of 3000 at 5% simple interest rate for 20 years

Question

asked Dec 28, 2019 4.4k views

1 Answer

Lambo · Answer 1 · 2020-01-02T00:46:45+0000

Answer:

$3000

Explanation:

Use formula for simple interest

$I=P\cdot i\cdot t,$

where I is interest, P is total principal, i is rate of interest per year (as decimal) and t is total time in years.

In your case, P=$3000, i=0.05, t=20, then

$I=3000\cdot 0.05\cdot 20=\$3000.$