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If $50,000 is invested at a simple interest rate of 8 percent, what is the net amount payable at the end of five years?

User Odalet
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2 Answers

6 votes
0.08* 50,000*5=20,000+50,000=$70,000
User Goran Siriev
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4 votes

Answer:

$70,000

Explanation:

An amount is invested = $50,000

At simple interest rate = 8%

Time = 5 years

Formula for simple interest A = P( 1 + rt )

Now we put the values in formula

A = 50,000 ( 1 + 0.08 × 5 )

A = 50,000 ( 1.4 )

A = $70,000

At the end of five years, the payable amount is $70,000.

User Rosane
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7.5k points

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