Question

Find the simple interest on a $1000 investment made for 4 years at an interest rate of 7% / year. What is the accumulated amount?

Answer 1

Answer:

The accumulated amount after 4 years is $1280.

Step-by-step explanation:

Principal = $1000

Time  =  4 years

Rate of Interest = 7%

SIMPLE INTEREST = $\frac{P \times R \times T}{100}$

⇒SI = $\frac{1000 \times 7 \times 4}{100} = 280$

or, the amount of simple Interest  = $280

Now, Accumulated Amount = Principal Amount + Simple Interest

                                                = $1000  + $280

                                                 = $1280

Hence, the accumulated amount after 4 years is $1280.