A man deposited 4,500 in a bank which paid him an interest of 11% per annum. how much simple interest will he get at the end of five years.
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Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 11%/100 = 0.11 per year.
Solving our equation:
A = 4500(1 + (0.11 × 5)) = 6975
A = 6,975.00
The total amount accrued, principal plus interest, from simple interest on a principal of 4,500.00 at a rate of 11% per year for 5 years is 6,975.00.
A = 6,975.00
S.I = A - P = 2,475.00
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