Find the value to which #3000 will amount in 5 years at 6% per annum simple interest.

Answer 1

Simple interest formula:

Simple Interest = (Principal × Rate × Time) / 100

Where,
Principal = #3000
Rate = 6%
Time = 5 years

Simple Interest = (3000 × 6 × 5) / 100 = #900

To find the amount, we add the simple interest to the principal:

Amount = Principal + Simple Interest

Amount = 3000 + 900 = #3900

Therefore, #3000 will amount to #3900 in 5 years at 6% per annum simple interest.