Tom invested K10000 at a simple interest rate of 7% for 5 years. What is the total amount he would receive on his investment?

Answer 1

The formula for calculating simple interest is:

Interest = Principal × Rate × Time

Where:
Principal = K10000
Rate = 7% (expressed as 0.07)
Time = 5 years

Plugging in these values into the formula:

Interest = 10000 × 0.07 × 5
= 3500

The total amount Tom would receive on his investment would be the sum of the principal and the interest:

Total amount = Principal + Interest
= 10000 + 3500
= 13500

Therefore, Tom would receive a total amount of K13500 on his investment.