Question

An investment of R2000 is made at 10 %per year simple interest for 3 years. The amount earned is there invested for 5 years at 16 %simple interest calculator the value of the investment at the end of 8 year

Answer 1

Explanation

We are asked to calculate the value of the investment at the end of 8 years

For the first part, we will find how much R2000 will yield after 3 years

$\begin{gathered} A=P(1+rt) \\ P=2000 \\ r=10\text{ \% =0.1} \\ t=3 \\ \\ A=2000(1+0.1\times3) \\ A=2000(1+0.3) \\ A=2000(1.3) \\ \\ A=R2600 \end{gathered}$

For the second part, we will have to know how much R2600 will yield after 5 years

$\begin{gathered} P=2600 \\ t=5\text{ years} \\ r=16\text{ \%=0.16} \\ \\ A=2600(1+0.16(5)) \\ A=2600(1+0.8) \\ A=R4680 \\ \end{gathered}$

At the end of the 8 years, the value of the investment will be R4680