Question

Determine the amount of money accuruing after $450 was invested for 4 years at 6% per annum simple intrest​

Answer 1

Solution!!

The concept of simple interest and amount has been used here. Given:-

Principal (P) = $450

Rate of interest (R) = 6%

Time (T) = 4 years

We have to find out the amount of money accruing. First, we need to find the interest.

→ Interest = (P × R × T)/100

Interest = (450 × 6 × 4)/100

Interest = $108

Now that we know the principal and the interest, we can find out the amount easily. Just one more formula and we'll get the amount.

→ Amount = Principal + Interest

Amount = $450 + $108

Amount = $558