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$16,000 is invested for 6 years at an annual simple interest rate of 15%.

(a) How much interest will be earned?
$

(b) What is the future value of the investment at the end of the 6 years?
$

User Naga
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1 Answer

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Final answer:

The interest earned is $14,400 and the future value of the investment at the end of 6 years is $30,400.

Step-by-step explanation:

To calculate the amount of interest earned, we can use the formula:

Interest = Principal × Rate × Time

Plugging in the given values:

Interest = $16,000 × 0.15 × 6

= $14,400

Therefore, the interest earned is $14,400.

To calculate the future value of the investment, we can use the formula:

Future Value = Principal + Interest

Plugging in the given values:

Future Value = $16,000 + $14,400

= $30,400

Therefore, the future value of the investment at the end of 6 years is $30,400.

User Raji A C
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