Question

If $12809.56 is invested at 4.56% simple interest, then what is the value of the investment after 3.8 years? Give your antwer tounded to the nearest cent. Inearfect Marks for this submission: 0.00/1.00. What amount of interest will be charged on $65108.52 borrowed for 11 months at a simple interest rate of 5.35% ? Give your answer rounded to the nearest cent.

Answer 1

The future value of a $12809.56 investment at 4.56% simple interest after 3.8 years is $15034.93. The total interest charged on a $65108.52 loan for 11 months at a 5.35% simple interest rate is $3082.90.

Step-by-step explanation:

To calculate the future value of an investment with simple interest, we use the formula: Future Value = Principal + (Principal × Interest Rate × Time).

For the investment of $12809.56 at 4.56% simple interest for 3.8 years, the calculation is:

• Principal (P) = $12809.56
• Interest Rate (r) = 4.56% or 0.0456 in decimal
• Time (t) = 3.8 years

Interest = P × r × t

Interest = $12809.56 × 0.0456 × 3.8 = $2225.37

So, the future value of the investment after 3.8 years is:

Future Value = Principal + Interest

Future Value = $12809.56 + $2225.37 = $15034.93

Now, for the second question about the interest charged on $65108.52 borrowed for 11 months at a simple interest rate of 5.35%, we convert the time to years (11 months is approximately 0.917 years).

Interest = P × r × t

Interest = $65108.52 × 0.0535 × 0.917 = $3082.90

The amount of interest charged will be $3082.90.