QuestionJuly 28, 2025

How much will 1,500 be worth in 6 years at 8% p.a. simple interest?

How much will 1,500 be worth in 6 years at 8% p.a. simple interest?
How much will 1,500 be worth in 6 years at 8%  p.a. simple interest?

Solution
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Answer

2,220 Explanation 1. Identify the formula for simple interest **Simple Interest (SI) = P \times r \times t**, where P is the principal, r is the rate, and t is the time. 2. Calculate the simple interest Substitute P = 1500, r = 0.08, and t = 6: SI = 1500 \times 0.08 \times 6. 3. Compute the total amount Total Amount = Principal + Simple Interest = 1500 + SI.

Explanation

1. Identify the formula for simple interest<br /> **Simple Interest (SI) = P \times r \times t**, where $P$ is the principal, $r$ is the rate, and $t$ is the time.<br />2. Calculate the simple interest<br /> Substitute $P = 1500$, $r = 0.08$, and $t = 6$: $SI = 1500 \times 0.08 \times 6$.<br />3. Compute the total amount<br /> Total Amount = Principal + Simple Interest = $1500 + SI$.
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