Question

1.) A man invested $600 at 8% per annum for 5 years.
Calculate:
a.) The simple interest payable

b.) The total amount of money the man collected at the end of the 5-year period.


2.) Mr. Ford invested $12 450 in a bank at 7.25% per annum simple interest for 6 years. Calculate:
a.) The interest he was paid


b.) The total of amount of money he would have received at the end of the period of investment.



3.) The simple on $15 000 for 9 years is interest is paid when $800 is invested for 5 years.

Answer 1

Step-by-step explanation:

1.)

a.) simple interest = prt/100 = (600 × 8 × 5)/100 = 240

b.) amount = principle + interest = 600 + 240 = 840

2.)

a.) s.i.= prt / 100 = (12 450 × 7.25 × 6) / 100 = 5415.75

b.) total amount = 12450 + 5,415.75 = 17,865.75

3.)

Answer 2

The answers to your questions are given below:

Step-by-step explanation:

• Simple interest is a quick and easy technique for determining the interest charge on a loan. The daily interest rate is multiplied by the principal by the number of days between payments to calculate simple interest. ​

Solutions:

(1) Given information: Principle amount is $600 (P), rate of interest is 8\% per annum (R), and the number of years is 5 (N).

To find: Simple interest payable and amount of money collected

(a) Simple interest payable: $\frac{PRN}{100}$

⇒ $\frac{(600\times8\times5)}{100}$

⇒ $240$

(b) Total money collected: Principle amount + Interest

⇒ $600+240=840$

Hence, here, the interest the man would be paying is $240 and the total money he'd be collecting at the end of 5-year tenure is $840.

(2) Given information: Principle amount is $12450 (P), rate of interest is 7.25\% per annum (R), and the number of years is 6 (N).

To find: Interest Mr. Ford was paid and the total amount of money he received.

(a) Simple interest paid: $\frac{PRN}{100}$

⇒ $\frac{(12450\times7.25\times6)}{100}$

⇒ $5415.75$

(b) Total money received: Principle amount + Interest

⇒ $12450+5415.75=17865.75$

Hence, the interest Mr. Ford would be receiving is $5415.75 and the total amount he'd be receiving at the end of his 6-year tenure is $17865.75

(3) Irrelevant question