Question

A principal of N1000 is invested at an 8% annual rate of interest. What will be the accrued interest after 6 years?

Answer 1

Answer:

480.

Step-by-step explanation:

We have been given that a principal of 1000 is invested at an 8% annual rate of interest.

To find the amount of interest after 6 years, we will use simple interest formula.

$I=Prt$, where,

I = Amount of interest,

P = Principal amount,

r =  Annual interest rate in decimal form,

t = Time in years.

$8\%=\frac{8}{100}=0.08$    

Upon substituting the given values, we will get,

$I=1000*0.08*6$

$I=1000*0.48$

$I=480$

Therefore, the amount of interest would be 480.