Question

A man invested $6000 at 8% per annum simple interest for 5 years.

a).calculate the simple interest.
b).the total amount of money collected at the end of the 5 year period.​

Answer 1

*r = R/100 = 8%/100 = 0.08 per year, A = P(1 + rt)

a) A = 6000[1 + (0.08 × 5)] = 8400

b) A = $8,400.00

Answer 2

a) $2400

b) $8400

Explanation:

The simple interest formula can be used to find the amount of interest. The amount collected at the end of the period is the total of principal and interest.

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a)

The simple interest is given by the formula ...

I = Prt . . . . . . P is the principal amount, r is the annual rate, and t is the number of years

For this investment, the interest is ...

I = $6000·0.08·5 = $2400

The simple interest amounts to $2400.

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b)

The amount collected at the end of 5 years is the principal plus interest:

P +I = $6000 +2400 = $8400

The total collected is $8400.