Question

Riley and Louie have a $5,000 to invest. They both invest at a 2.5% simple interest rate. What is the value of Louis investment if he invest for 3 years, then removes and spends $1,000 and then invests what remaining for 4 more years at a rate of 4%? Please show the work!

Answer 1

I️ am leaving Riley out of this because it is only asking about Louis and it doesn’t say they split it so here is the work. The circled numbers are the steps in order.