Question

Sara puts $4,000 into an investment yielding 5% annual simple interest; she left the money in for five years and 6 months. How much interest does Sara get at the end of those five years and 6 months?

Answer 1

Answer:
`\$1100`

Explanation:

Given

Principal amount is
`P=\$4000`

Rate of interest
`R=5\%`

Time period
`T=5\ yr\ \text{and}\ \text{6 months}\equiv 5.5\ yr`

We know, Simple interest is

`\Rightarrow S.I.=(P* R* T)/(100)`

Putting values

`\Rightarrow S.I.=(4000* 5* 5.5)/(100)=\$1100`

Sara gets
`\$1100` after 5 years and 6 months