SmarterEd

Aussie Maths & Science Teachers: Save your time with SmarterEd

  • Login
  • Get Help
  • About

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)

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

Show Answers Only

`$1500`

Show Worked Solution

`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`

`600` `= P xx 5/100 xx 8`
`:.P` `= 600/0.4`
  `= $1500`

Filed Under: Simple Interest Tagged With: num-title-ct-corea, smc-4332-30-Find principal, smc-4332-50-Graphs

Copyright © 2014–2025 SmarterEd.com.au · Log in