Answer:
amount of interest is $267
total profit is $173
profit % is 4.86 %
Step-by-step explanation:
Given data
face value = $4000
time period = 18 months = 1.5 years
maturity 4 years
interest = 3%
principal = $3560
to find out
amount of interest, profit , percent of your investment is the profit made
solution
we know time period is lapsed for 1.5 years i.e now interest for time 2.5 year will be calculate
first we calculate the interest i.e
interest = ( principal × rate × time ) /100 ...........1
put all value principal, rate and time in equation 1 we get interest i.e.
interest = ( 3560 × 3 × 2.5 ) /100
interest = $267
so now total amount with interest will be
principal + interest
amount = $3560+$267
amount = $3827
so total benefit we get i.e. face value - total amount
total benefit = face value - total amount
total benefit = $4000 - $3827
total benefit = $173
so total profit is $173
and profit % = ( profit / principal ) × 100
profit % = ( 173 / 3560 ) × 100
profit % = 4.859 %
so total profit % is 4.86 %
