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Simple Interest, SMB-003

Min Woo invests $8000 for 3 years. The simple interest is calculated at a rate of 4% per annum.

Calculate the total value of the investment at the end of this period.   (2 marks)

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`$8960`

Show Worked Solution
`text(Interest)` `=Prn`
  `=8000 xx \frac{4}{100} xx 3`
  `=$960`

 

`:.\ text(Value of Investment)` `=8000+960`
  `=$8960`