Question

if a person invests $120 at 8% annual interest, find the approximate value of the investment at the end of 5 years

Answer 1

$48

Explanation:

Simple interest (I) = PRT/100

Where P = principal

R= rate

T = time

.: Simple Interest = 120 × 8 × 5

---------------

100

S. I = $48

.: the approximate value of the investment at the end of 5 years will be = $48