Question

A person deposits Php 5,000 in a bank account which pays 6% simple interest per year.

Find the value of his deposit after 4 years..?

Answer 1

`\huge{\bf{\underline{\underline{Answer :}}}}`

The value of his deposit after 4 years will be Php 6200.

`\huge{\sf{\underline{\underline{Explanation :}}}}`

We know the formula to calculate simple interest.

`\implies{\bf{\boxed{\boxed{Simple \ Interest = Principal * Rate * Time}}}}`

Where,

• Principal(P) = Php 5000
• Rate(R) = 6% per year (0.06)
• Time(T) = 4 years

___________[Putting Values]

`\sf{\implies Simple \ Interest = 5000 * 0.06 * 4} \\ \\ \bf{\rightarrow Simple \ Interest = Php \ 1200}`

Now,

To find the total value of the deposit after 4 years add the principal and simple interest.

`\sf{\implies Total \ value = Simple \ interest + Principal} \\ \\ \sf{\implies Total \ value = Php \ 5000 + Php 1200} \\ \\ \bf{\rightarrow Total Value = Php \ 6200}`