Jamal invested $5000.00 in an account that earns 2.50% simple interest per annum for a term of 10 years.
A.) How much interest will he earn?
B.) How much will his investment be worth at the end of the term?
the interest is 5000*.025*10
To calculate the interest earned by Jamal, we can use the formula:
Interest = Principal * Rate * Time
Where:
Principal = $5000.00
Rate = 2.50% per annum (which can be converted to a decimal by dividing it by 100: 2.50/100 = 0.025)
Time = 10 years
A.) Calculating the interest earned:
Interest = $5000.00 * 0.025 * 10 years
Interest = $1,250.00
Therefore, Jamal will earn a total interest of $1,250.00 over a 10-year term.
B.) To calculate the total amount of his investment at the end of the term, we need to add the interest earned to the principal:
Total Amount = Principal + Interest
Total Amount = $5000.00 + $1,250.00
Total Amount = $6,250.00
Therefore, Jamal's investment will be worth $6,250.00 at the end of the 10-year term.