Maino invested k5000 in a term deposit account paying simple interest of 5% annually. How much was his investment worth after 10 years.

Answer 1

First, we calculate the interest earned per year by multiplying the principal amount and the annual interest rate:

Interest = k5000 x 0.05 = k250

Then, we calculate the total interest earned over 10 years:

Total Interest = k250 x 10 = k2500

Finally, we add the total interest to the principal amount to find out how much his investment is worth after 10 years:

Investment Worth = k5000 + k2500 = k7500

Therefore, Maino's investment is worth k7500 after 10 years.