Question

If $50,000 is invested at a simple interest rate of 8 percent, what is the net amount payable at the end of five years?

Answer 1

0.08* 50,000*5=20,000+50,000=$70,000

Answer 2

$70,000

Explanation:

An amount is invested = $50,000

At simple interest rate = 8%

Time = 5 years

Formula for simple interest A = P( 1 + rt )

Now we put the values in formula

A = 50,000 ( 1 + 0.08 × 5 )

A = 50,000 ( 1.4 )

A = $70,000

At the end of five years, the payable amount is $70,000.