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Mia invests $4000 for 2 years and 3 months at 5% p.a. simple interest. What is the total value of the investment at the end of this period?

 Mar 19, 2015

Best Answer 

 #1
avatar+130516 
+5

The interest on this is given by

I = Prt     

Here  P = $4000  r = 5% = .05   and t = 2 years 3 months = 2.25 years

So we have

I = 4000(.05)(2.25) = $450

So the total value is  $4000 + $450 = $4450

 

   

 Mar 19, 2015
 #1
avatar+130516 
+5
Best Answer

The interest on this is given by

I = Prt     

Here  P = $4000  r = 5% = .05   and t = 2 years 3 months = 2.25 years

So we have

I = 4000(.05)(2.25) = $450

So the total value is  $4000 + $450 = $4450

 

   

CPhill Mar 19, 2015

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