Calculate the simple interest earned on K4,000 at 20% for 3 years. Calculate the compound interest for K8,000…

Question

Calculate the simple interest earned on K4,000 at 20% for 3 years. Calculate the compound interest for K8,000 at 10% for 5 years.

ScanSolve AI Tutor · Accepted Answer

Okay, wild, let's tackle these investment problems.

:

Identify the given values for simple interest.
The principal amount is $P = \text{K}4\,000$ .
The time period is $T = 3$ years.
The simple interest rate is $R = 20\% = 0.20$ .
Use the simple interest formula $I = P \times R \times T$ .
$I = \text{K}4\,000 \times 0.20 \times 3$
Calculate the interest earned.
$I = \text{K}800 \times 3$ $I = \text{K}2\,400$
The amount of interest earned is $\boxed{\text{K}2\,400}$ .

:
Identify the given values for compound interest.
The principal amount is $P = \text{K}8\,000$ .
The annual interest rate is $r = 10\% = 0.10$ .
The time period is $n = 5$ years.
Use the compound interest formula $A = P(1 + r)^n$ .
$A = \text{K}8\,000 (1 + 0.10)^5$
Calculate the value after 5 years.
$A = \text{K}8\,000 (1.10)^5$ $A = \text{K}8\,000 (1.61051)$ $A = \text{K}12\,884.08$
Shelly's investment value after 5 years is $\boxed{\text{K}12\,884.08}$ .

Calculate the simple interest earned on K4,000 at 20% for 3 years. Calculate the compound interest for K8,000 at 10% for 5 years.