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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.

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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.

This problem has been solved

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