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Simple Interest, SMB-004

Clancy estimates that he will need $7800 for his planned trip to visit the The Stockman's Hall of Fame in Longreach.

If he invests $7000 for 18 months at a simple interest rate of 6% per annum, will he reach his goal of $7800? Show your working.   (2 marks)

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`A`

Show Worked Solution
`text(Interest)` `=Prn`
  `=7000 xx \frac{6}{100} xx \frac{18}{12}`
  `=$630`

 

`text(Value of Investment)` `=7000+630`
  `=$7630`

 
`:.\ \text{Clancy won’t reach his goal of $7800}.`

Filed Under: Simple Interest Tagged With: num-title-ct-corea, smc-4332-10-Find interest

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