Question

$500 at a 7% simple interest rate over 4years

Answer 1

So profit will be $140 and he will have a total of $640 after 4 years

Explanation:

We know the formula for Interest rate i.e.

A = PRT ............(i)

here in this equation is P is the money invested

R is the rate at which it is invested

T is the time for which money is invested

A is the amount we get after that period of time

Now in the question we are given

R= 7%

P=$500

T=4 years

Now Putting these values in equation (i)

A=PRT

Putting values gives

A = (500)*(7%)*(4)

A
`=500 * (7)/(100)*4`

A
`=(3500)/(100)*4`

A=35*4

A=$140

So he will gain a profit of $140

Total money he will have after 4 years = 500 + 140

=$640

So profit will be $140 and he will have a total of $640 after 4 years