Luke invested his money in the stock market worth ₱500,000 and earns about 5% yearly.How much will the interest be after 10 years?
Question
Luke invested his money in the stock market worth ₱500,000 and earns about 5% yearly.
How much will the interest be after 10 years?
Solution
To calculate the interest earned after 10 years, you can use the formula for simple interest which is I = PRT, where:
- I is the interest
- P is the principal amount (the initial amount of money)
- R is the rate of interest per year
- T is the time the money is invested for in years
In this case, P = ₱500,000, R = 5/100 = 0.05 (since the rate is given as a percentage), and T = 10 years.
Substituting these values into the formula gives:
I = (₱500,000) * (0.05) * (10) = ₱250,000
So, the interest earned after 10 years will be ₱250,000.
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