Question

If $400 is invested at the rate of 6% for one year, what will be the total value of the investment (the amount)?

Answer 1

$424 because $400×6/100×1=$24 which is added to $400

Answer 2

Total value of investment = 424$

Explanation:

Money invested = 400 $

Rate of increase per year = 6%

Time for invested = 1 year

Benefit after 1 year
`=(400* 6)/(100)* 1=24\$`

Total value of investment = Money invested + Benefit

Total value of investment = 400 + 24 = 424$