Final answer:
The maturity value of a AED 5000 deposit at a 2% simple interest for 2 years is AED 5200.
Step-by-step explanation:
To determine the maturity value of a deposit made into a savings account using simple interest, you can use the formula:
A = P(1 + rt)
Where:
A is the maturity amount (the principal plus the interest)
P is the principal amount (the initial amount deposited)
r is the annual interest rate (in decimal form)
t is the time the money is invested or borrowed for, in years
In your case:
P = AED 5000
r = 2% or 0.02
t = 2 years
Thus, your maturity value A is calculated as follows:
A = AED 5000(1 + 0.02 × 2)
A = AED 5000(1 + 0.04)
A = AED 5000(1.04)
A = AED 5200
So, the maturity value of the deposit after 2 years at a 2% simple interest rate will be AED 5200.