Answer:
1600
Step-by-step explanation:
You want to calculate the interest on $8000 at 5% interest per year after 4 year(s).
The formula we'll use for this is the simple interest formula, or:
Where:
P is the principal amount, $8000.00.
r is the interest rate, 5% per year, or in decimal form, 5/100=0.05.
t is the time involved, 4....year(s) time periods.
So, t is 4....year time periods.
To find the simple interest, we multiply 8000 × 0.05 × 4 to get that:
The interest is: $1600.00
Usually now, the interest is added onto the principal to figure some new amount after 4 year(s),
or 8000.00 + 1600.00 = 9600.00. For example:
If you borrowed the $8000.00, you would now owe $9600.00
If you loaned someone $8000.00, you would now be due $9600.00
If owned something, like a $8000.00 bond, it would be worth $9600.00 now.
