Answer:
Explanation:
The principal amount = $5000
The rate of interest = 7%
Investment duration = 20 years.
To find:
Final value of investment.
Calculations:
If the simple interest rate is R% per annum invested for T years and the principal amount is P, then the total resultant amount at the end of T years time is given by:
Thus, we have:
Thus, the resultant value of the investment will become $12,000.