Sarah invests £9600 at a simple interest rate of 8% per year. Work out the value of the investment after 3 years
Answers
Answered by
47
Answer:
1 year investment = £9600
Interest = 8%
= 8/100 × 9600
= £768
Total 1 year investment = £10368
3 year investment = 3 × 10368
= £31104
Answered by
9
Given:
Investment made by Sarah= £9600
Rate of simple interest = 8%
Time period of the investment = 3 years
To find:
The value of the investment after 3 years.
Solution:
Let us first find out the simple interest for 3 years. We know that:
Simple interest (S.I) = Principal × Rate × Time/ 100
= 9600 ×8 ×3/ 100
= £2304
Thus the value of the investment after 3 years will be:
Amount = Principal + S.I
= £9600 + £ 2304
= £ 11,904
Thus the value of the investment after 3 years will be £ 11,904.
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