Question

If a person invests $120 at 8% annual interest, find the approximate value of the investment at the end of 5 years.

Answer 1

not sure ifyou want simple interst or compound interest

if you want simple then go to AAAAAAAAAA
if compound then go to BBBBBBBB




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simple interest
I=PRT
initerest=I
P=prinicpal=amount invested
R=rate in decimal
t=time in years

so given
P=120
R=8%=0.08
t=5
so
I=(120)(0.08)(5)=48
the total investment is interest+investment=48+120=$168



BBBBBBBBBBBBB
compound interst for yearly compounded
$A=P(1+r)^t$
A=final amount
P=principal
r=rate in decimal form
t=time in years

given
P=120
r=8%=0.08
t=5

$A=120(1+0.08)^5$
$A=120(1.08)^5$
use your calculator
A=176.319
round to nearest cent
A=$176.32






so
if simple interest, then the investment is worth $168
if compound interest, then the investment is worth $176.32

Answer 2

The value of  $120 at 8% annual interest becomes $168 at the end of 5 years.

What is simple interest?

Simple interest is a way to figure out how much interest will be charged on a sum of money at a specific rate and for a specific duration of time.

Simple interest has a constant principal amount, as opposed to compound interest, which multiplies the interest from the principal of previous years to calculate the interest of the subsequent year.

Given that

Principle amount (P) = $120

Rate of interest (R) = 8%

Time period (T) = 5 years.

Hence the simple interest is given by the formula

Annual interest  = PRT/100

So annual interest = 120 × 8 × 5 /100 = $48.

Total amount = principle amount + interest.

Total amount = 120 + 48 =  $168 hence it will be correct answer.

For more about simple interests

https://brainly.com/question/25845758

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