Find the amount due at the end of 2 1/2 years if P 8,000.00 is invested at 12% simple interest.
Question
Find the amount due at the end of 2 1/2 years if P 8,000.00 is invested at 12% simple interest.
Solution
To calculate the amount due at the end of 2 1/2 years for an investment of P 8,000.00 at 12% simple interest, you can use the formula for simple interest:
I = PRT
where: I = Interest P = Principal amount (the initial amount of money) R = Rate of interest T = Time the money is invested for
In this case, P = 8000, R = 12/100 = 0.12 (because the rate is given as a percent, we must divide by 100 to convert it to a decimal), and T = 2.5 years.
Substituting these values into the formula gives:
I = 8000 * 0.12 * 2.5
Calculate the above expression to find the interest.
Then, add the interest to the principal amount to find the total amount due at the end of 2 1/2 years.
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