Question

$1000 was deposited at 5% simple interest when Samantha was born. What is the simple interest if she is 12 years old? and what would it be after 12 years

Answer 1

$1600; $2200

Explanation:

Simple interest(I) =P×R×T

Where

P=Principal

R=Rate

T=Time

When she is 12 years

P=$1000

R=5%

=5/100

=0.05

T=12 years

Simple interest(I) =P×R×T

=1000×0.05×12

=$600

Total amount=principal + simple interest

=$1000+$600

=$1600

Simple Interest after another 12 years= 24 years

T=24

So,

Simple interest(I) =P×R×T

=$1000×0.05×24

=$1200

Total amount=principal+simple Interest

= 1,000+1,200

=$2,200