Question

sarah invests £9600 at a simple interest rate of 8% per year. Work out the value of the investment after 3 years

Answer 1

Answer:

the value of the investment after 3 years=  £11,904

Step-by-step explanation:

sarah invests £9600 at a simple interest rate of 8% per year

number of years = 3

Formula for simple interest

I = P*n* r

P is the initial amount invested= 9600

r is the rate of interest = 8% = 0.08

n = number of years = 3

Now we find interest using formula

I = 9600 * 0.08 * 3= 2304

Interest amount is 2,304

Now we add the interest with the initial amount to get the value of investment after 3 years

9600 + 2304= 11904