Q:

Find the simple interest on a $1000 investment made for 4 years at an interest rate of 7% / year. What is the accumulated amount?

Accepted Solution

A:
Answer:The accumulated amount after 4 years is $1280.Step-by-step explanation:Principal = $1000Time  =  4 yearsRate of Interest = 7%SIMPLE INTEREST = [tex]\frac{P \times R \times T}{100}[/tex]⇒SI = [tex]\frac{1000 \times 7 \times 4}{100}  = 280[/tex]or, the amount of simple Interest  = $280Now, Accumulated Amount = Principal Amount + Simple Interest                                                 = $1000  + $280                                                  = $1280Hence, the accumulated amount after 4 years is $1280.