Find the amount due at the end of 2 1/2 years if P 8,000.00 is invested at 12% simple interest.
Question
Find the amount due at the end of 2 1/2 years if P 8,000.00 is invested at 12% simple interest.
Solution
To calculate the amount due at the end of 2 1/2 years for an investment of P 8,000.00 at 12% simple interest, you can use the formula for simple interest:
I = PRT
where: I = Interest P = Principal amount (the initial amount of money) R = Rate of interest T = Time the money is invested for
In this case, P = 8000, R = 12/100 = 0.12 (because the rate is given as a percent, we must divide by 100 to convert it to a decimal), and T = 2.5 years.
Substituting these values into the formula gives:
I = 8000 * 0.12 * 2.5
Calculate the above expression to find the interest.
Then, add the interest to the principal amount to find the total amount due at the end of 2 1/2 years.
Similar Questions
A sum of money amounts to ₹1,800 when invested at 6.25% p.a. simple interest for a period of eight years. Find the principal.
A man expects to receive P125,000 in 8 years. How much must he invest now considering an interest rate of 12% compounded quarterly.
A man earned interest of Rs. 1,050 on investing a certain sum at compound interest of 10% p.a., compounded annually for 2 years. Find the interest earned by him when the same sum is invested at simple interest of 8% p.a. for 3 years. a. RS 1100 b. RS 1200 c. RS 1020 d. RS 1000
The interest ($/) received from an investment varies jointly as the interest rate per annum (%) and the period of investment (T years). If a sum of money is invested for 2 years at an interest rate of 8% p.a., the interest received will be $800. (a) Express I in terms of r and T. (b) If the same sum of money is invested for 3 years at an interest rate of 14% p.a., find the interest received.
Find the amount of Rs. 50000 after 2 years, compounded annually; the rate of interest being 8% p.a during the first yearand 9% p.a during the second year
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.