Question

John invest R500, at 12% per annum using simple interest for 4 years. How much money will John have at the end of 4 years?​

Answer 1

The total amount he has at the end is ₹740.

Explanation:

Simple Interest =
`(PRT)/(100)`

=
`(500 * 12 * 4)/(100)` = ₹240

Total amount he has at the end of 4 years = Principal + Interest
= ₹500 + ₹240

= ₹740

Answer 2

Simple Interest = (Principal x Rate x Time)

where:

Principal = R500 (the amount invested)

Rate = 12% per annum = 0.12 (expressed as a decimal)

Time = 4 years

So, the simple interest earned by John over 4 years is:

Simple Interest = (500 x 0.12 x 4) = R240

To find the total amount of money John will have at the end of 4 years, we need to add the simple interest to the principal:

Total amount = Principal + Simple Interest = 500 + 240 = R740

Therefore, John will have R740 at the end of 4 years.