Question

Ama deposited 5,000.00 in a fixed deposit for 3 years in an account with 8% simple interest per anum. What is the profit at the end of the 3rd year as well as the total amount?

Answers

GPT 3.5
To find the profit, we can use the formula for simple interest:

Profit = Principal * Rate * Time

Given that the principal (P) is $5,000, the rate (R) is 8% or 0.08 expressed as a decimal, and the time (T) is 3 years, we can substitute these values into the formula:

Profit = 5,000 * 0.08 * 3
Profit = $1,200

Therefore, the profit at the end of the 3rd year is $1,200.

To find the total amount, we need to add the principal and the profit together:

Total Amount = Principal + Profit
Total Amount = 5,000 + 1,200
Total Amount = $6,200

Therefore, the total amount at the end of the 3rd year is $6,200.

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