Question

PLEASE HELP FAST!

Jamal has invested $5000.00 in an account that earns 2.50% simple interest per annum for a term of 10 years.

A) how much interest will he earn


B) how much will his investment be worth at the end of the term

Answer 1

a) $1250 b) $6250

Explanation:

1. I = PRT

2. Sub in what you know into the equation.

I = $5000 x 0.025 x 10

3. Put this into a calculator and you get $1250. This is the simple interest earned.

4. For B, simply add $1250 to $5000 to get $6250. This is how much Jamals investment will be worth at the end of the term.