Question

A $2,800 deposit for 10 years at a simple interest rate of 8%. (I= P x R x T)Interest amount:Total Value:

Answer 1

`\begin{gathered} Interest=\text{ \$2240} \\ Value=\text{ \$}5040 \end{gathered}`

Step-by-step explanation

To find the simple interest, we have to apply the formula for Simple Interest:

`I=(P\cdot R\cdot T)/(100)`

where P = principal = $2,800

R = rate = 8%

T = time (in years) = 10 years

Therefore, the interest is:

`\begin{gathered} I=(2800\cdot8\cdot10)/(100) \\ I=\text{ \$2240} \end{gathered}`

To find the total value, add the interest to the principal:

`\begin{gathered} TV=2800+2240 \\ TV=\text{ \$5040} \end{gathered}`

That is the total value.