Question

Berto invested in a precious mineral. The value of the mineral tend to increase by about 11% per year. He invest $40,000 in 2015 How much more will he invested be worth in 2020

Answer 1

the difference from 40000 to the future value in 2020, namely 5 years later is simply the yield or interest amount.

`\bf ~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$40000\\ r=rate\to 11\%\to (11)/(100)\dotfill &0.11\\ t=years\dotfill &5 \end{cases} \\\\\\ I=(40000)(0.11)(5)\implies I=22000`