Tumi saves R800 per month for two years. She then invests this amount for 36 months at a simple interest rate of 12.5% p.a. Calculate the total interest earned.

Here are the calculations for Tumi's investment: Step 1: Calculate the total amount Tumi has saved. Tumi saved R800 per month for two years. First, convert the time into months: Number of months = 2 years × 12 months/year = 24 months Now, calculate the total amount saved: Total saved = Monthly saving × Number of months Total saved = R800 × 24 Total saved = R19\,200 1.1 Calculate the amount that Tumi will be able to invest in the bank. The amount Tumi will invest is the total amount he has saved. Principal amount (P) = R19\,200 The amount Tumi will be able to invest is R19\,200. Step 2: Determine the interest Tumi will earn. The investment is for 36 months at 12.5% p.a. simple interest. First, convert the time into years: Time (t) = 36 months12 months/year = 3 years Convert the annual interest rate to a decimal: Interest rate (r) = 12.5\% = (12.5)/(100) = 0.125 Use the simple interest formula I = P · r · t: I = R19\,200 × 0.125 × 3 I = R2\,400 × 3 I = R7\,200 1.2 Determine the interest he will earn from the bank. The interest Tumi will earn is R7\,200. Step 3: Calculate the total amount Tumi will receive at the end of the investment period. The total amount received is the principal plus the interest earned. Total amount (A) = P + I A = R19\,200 + R7\,200 A = R26\,400 1.3 What is the total amount that he will receive at the end of the investment period? The total amount Tumi will receive is R26\,400. Last free one today — make it count tomorrow, or type /upgrade for unlimited.