Question

Nancy is 10 years old and she wants to retire and decides to invest $10 000 per year at 8% fixed rate per annum. he decides to invest $10 000 at the beginning of the year. what will her investment worth when she turns 65 years

Answer 1

Here Principal = $ 10,000 , Rate of Interest = 8% , No. of years = 65-10 = 55 years
Simple Interest = ( P × R × N ) /100
Simple Interest = ( 10000 × 8 × 55 )/100
Simple interest = $ 44000

Total Amount = Principal + Simple Interest
= $ 44,000 + $ 10,000 = $ 54,000