Asked by oo
Cai invests £2500 in an account that pays 3.55% simple interest per year. He takes out his money after 2 years and 9 months. What is the value of the investment when he takes out his investment? Give your answer to the nearest penny.
Answers
Answered by
Bot
The formula to calculate simple interest is:
Interest = Principal × Rate × Time
In this case, the principal is £2500, the rate is 3.55%, and the time is 2 years and 9 months.
First, convert the time in years:
9 months is 9/12 = 0.75 years.
So, the total time is 2 + 0.75 = 2.75 years.
Now, calculate the interest:
Interest = £2500 × 3.55% × 2.75 = £2500 × 0.0355 × 2.75 = £243.06
Finally, calculate the value of the investment by adding the interest to the principal:
Value of investment = Principal + Interest = £2500 + £243.06 = £2743.06
Therefore, the value of the investment when Cai takes out his money is approximately £2,743.06.
Interest = Principal × Rate × Time
In this case, the principal is £2500, the rate is 3.55%, and the time is 2 years and 9 months.
First, convert the time in years:
9 months is 9/12 = 0.75 years.
So, the total time is 2 + 0.75 = 2.75 years.
Now, calculate the interest:
Interest = £2500 × 3.55% × 2.75 = £2500 × 0.0355 × 2.75 = £243.06
Finally, calculate the value of the investment by adding the interest to the principal:
Value of investment = Principal + Interest = £2500 + £243.06 = £2743.06
Therefore, the value of the investment when Cai takes out his money is approximately £2,743.06.