Question

Sarah invests £9600 at a simple interest rate of 8% per year.

Work out the value of investment after 3 years.

Answer 1

The simple interest on the investment can be calculated as follows:
Interest = Principal * Rate * Time
= £9600 * 8% * 3 years
= £9600 * 0.08 * 3
= £2,304

The total value of the investment after 3 years would be the Principal + Interest
= £9600 + £2,304
= £11,904.