 Suggested languages for you:

Europe

Problem 1

# Find the simple interest on a $$\ 500$$ investment made for 2 yr at an interest rate of $$8 \% /$$ year. What is the accumulated amount?

Expert verified
The simple interest earned on the $$\500$$ investment after 2 years at an 8% interest rate is $$\80$$. Therefore, the accumulated amount is $$\580$$.
See the step by step solution

In this problem, we are given: - Principal Amount (P) = $500 - Interest Rate (R) = 8% per year - Time (T) = 2 years ## Step 2: Calculate the Simple Interest To calculate the simple interest, we can use the formula: Simple Interest (SI) = $$\frac{Principal \times Interest Rate \times Time}{100}$$ Substitute the given values into the formula: SI = $$\frac{500 \times 8 \times 2}{100}$$ ## Step 3: Solve for Simple Interest Calculate the result of the equation: SI = $$\frac{8000}{100}$$ SI =$80 So, the simple interest earned on the investment after 2 years is $80. ## Step 4: Calculate the Accumulated Amount To find the total accumulated amount, we can use the formula: Accumulated Amount = Principal Amount + Simple Interest Substitute the given values into the formula: Accumulated Amount = 500 + 80 ## Step 5: Solve for Accumulated Amount Calculate the result of the equation: Accumulated Amount =$580 So, the accumulated amount after 2 years is \$580.

We value your feedback to improve our textbook solutions.

## Access millions of textbook solutions in one place

• Access over 3 million high quality textbook solutions
• Access our popular flashcard, quiz, mock-exam and notes features ## Join over 22 million students in learning with our Vaia App

The first learning app that truly has everything you need to ace your exams in one place.

• Flashcards & Quizzes
• AI Study Assistant
• Smart Note-Taking
• Mock-Exams
• Study Planner 