Simple Interest, SMB-005

Johnno lives overseas and needs $6000 for his planned trip to Parramatta Stadium to watch Junior Paolo play.

If he invests $5600 for 15 months at a simple interest rate of 6.5% per annum, determine if will get to see the big fella play. Show your working. (2 marks)

--- 4 WORK AREA LINES (style=lined) ---

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`text(Interest)`	`=Prn`
	`=5600 xx \frac{6.5}{100} xx \frac{15}{12}`
	`=$455`

`text(Value of Investment)`	`=5600+455`
	`=$6055>$6000`

`:.\ \text{Johnno will get to see Junior play}.`

Show Worked Solution

`text(Interest)`	`=Prn`
	`=5600 xx \frac{6.5}{100} xx \frac{15}{12}`
	`=$455`

`text(Value of Investment)`	`=5600+455`
	`=$6055`

`:.\ \text{Johnno will get to see Junior play}.`