Question

Luna invested $8000 for 36 months at an interest rate of 4.8% per month. How much money will Luna have at the end of her investment?

Answer 1

Answer : $ 9, 152

Luna invested $8000 for 36 months at an interest rate of 4.8%

Let P = principal

T = time

r = rate

Using the simple interest,

$\begin{gathered} I\text{ =}\frac{P\text{ x R x T}}{100} \\ P\text{ = \ 8000} \\ r\text{ = 4.8\%} \\ t\text{ = 36 months} \\ 12\text{ months = 1 year} \\ 36\text{ months = x year} \\ \text{Cross multiply} \\ 12\cdot\text{ x = 1 x 36} \\ 12x\text{ = 36} \\ \text{Divide both sides by 12} \\ x\text{ = 36/12} \\ x\text{ = 3 years} \\ \text{Hence, t = 36 months = 3 years} \\ I\text{ = }\frac{8000\text{ x 3 x 4.8}}{100} \\ I\text{ = }\frac{115,\text{ 200}}{100} \\ I\text{ = \ 1, 152} \end{gathered}$

The total balance = Interest + principal

Balance = 1, 152 + 8000

Balance =$9, 152

The total money she will have at the end of the investment is $9, 152