How much interest is earned on a principal of $2.58 invested at an interest rate of 5% for four years?

Mathematics

2 answers:

pochemuha2 years ago

7 0

Answer:

Step-by-step explanation:

The formula for simple interest is

prt = I, where p is the initial investment, r is the interest rate in decimal form, t is the time it's invested for, and I is the interest earned. We multiply the p, the r, and the t together to get I. For us that looks like this:

(2.58)(.05)(4) = I and

I = .516 or 52 cents.

Evgesh-ka [11]2 years ago

4 0

Answer:

$0.516≈ 0.52

Step-by-step explanation:

For simple interest:

=PRT/100

=2.58 * 5 * 4/100

= 51.6/100

= $0.516 = $0.52 ( when rounded off)

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1) The accumulated amount after six years and the total interest that Trevor will receive if the interest rate is 4.5% per annum simple interest after 6 years are <u>R25,400</u> and <u>R5,400</u> respectively.

2) The accumulated amount after six years and the total interest that Trevor will receive if the interest rate is 4.5% per annum compound interest after 6 years are<u> R26,045.20</u> and <u>R6,045.20</u> respectively.

<h3>Data and Calculations:</h3><h3>Simple Interest:</h3>

Principal = R20,000

Investment period = 6 years

Interest rate = 4.5%

Simple interest for 6 years = R5,400 ($20,000 x 6 x 4.5%)

Principal + Interest = R25,400 (R20,000 + R5,400)

<h3>Compound Interest:</h3>

Principal = R20,000

Investment period = 6 years

Interest rate = 4.5%

N (# of periods) = 6 years

I/Y (Interest per year) = 4.5%