Simple Interest, SMB-021

The graph below shows the growth in value of a $1000 investment over a period of four years.

A different amount of money is invested under the same investment conditions for eight years.

In total, the amount of interest earned on this investment is $600.

Calculate the amount of money invested. (3 marks)

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`$1500`

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`text(The linear graph shows a simple interest rate is applied.)`

`text{Simple interest rate} = 50/1000 xx 100=5text(% p.a.)`

`I = 600,\ \ r = 5/100,\ \ n=8`