Question

Jasim has invested 600 dinars in a business at the rate of 4 % for 3 years. Find his

Answer 1

Answer:

1) Simple interest is 72 dinars

2) Total amount after 3 years is 672 dinars.

Step-by-step explanation:

Principal Amount P = 600 dinars

Interest Rate= 4% = 0.04

Time = 3 years

i) Simple Interest

The formula used to calculate interest is $I=P\times r \times t$

Putting values and finding interest

$I=P\times r \times t\\I=600\times 0.04 \times 3\\I=72$

So, simple interest is 72 dinars

ii) Total amount after 3 years ​

The formula to calculate total amount is: $A=P(1+rt)$

Putting values and finding future amount A

$A=P(1+rt)\\A=600(1+(0.04*3))\\A=600(1+0.12)\\A=600(1.12)\\A=672$

So, Total amount after 3 years is 672 dinars.