Question

Find the simple interest on a $1000 investment made for 4 years at an interest rate of 7% / year. What is the accumulated amount?

Answer 1

The accumulated amount after 4 years is $1280.

Explanation:

Principal = $1000

Time = 4 years

Rate of Interest = 7%

SIMPLE INTEREST =
`(P * R * T)/(100)`

⇒SI =
`(1000 * 7 * 4)/(100)  = 280`

or, the amount of simple Interest = $280

Now, Accumulated Amount = Principal Amount + Simple Interest

= $1000 + $280

= $1280

Hence, the accumulated amount after 4 years is $1280.