Question

A man invested $8000 in a bank at 5% per annum simple interest for 6 years. What is the total amount of money he would have received at the end of the period of investment?

Answer 1

A₆ = 10720.765$

Explanation:

The formula when the realized interest is added to the basic investment after each year is:

A₆ = I (1 + r)⁶

where I -is initial investment, r percentage rate

A₆ = 8000 (1 + (5/100))⁶ = 8000 1.05⁶ = 8000 · 1.340095641 = 10720.765$

A₆ = 10720.765$

God with you!!!

Answer 2

assuming simple interest yield.

`\bf ~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$8000\\ r=rate\to 5\%\to (5)/(100)\dotfill &0.05\\ t=years\dotfill &6 \end{cases} \\\\\\ A=8000[1+(0.05)(6)]\implies A=8000(1.3)\implies A=10400`