Question

Jasim has invested 600 dinars in a business at the rate of 4 % for 3 years. Find his

i- simple interst ?


ii- total amount after 3 years ​

Answer 1

1) Simple interest is 72 dinars

2) Total amount after 3 years is 672 dinars.

Explanation:

Principal Amount P = 600 dinars

Interest Rate= 4% = 0.04

Time = 3 years

i) Simple Interest

The formula used to calculate interest is
`I=P* r * t`

Putting values and finding interest

`I=P* r * t\\I=600* 0.04 * 3\\I=72`

So, simple interest is 72 dinars

ii) Total amount after 3 years ​

The formula to calculate total amount is:
`A=P(1+rt)`

Putting values and finding future amount A

`A=P(1+rt)\\A=600(1+(0.04*3))\\A=600(1+0.12)\\A=600(1.12)\\A=672`

So, Total amount after 3 years is 672 dinars.