Tom invested K10000 at a simple interest rate of 7% for 5 years. What is the total amount he would receive on his investment?
The formula for calculating simple interest is:
Interest = Principal × Rate × Time
Where:
Principal = K10000
Rate = 7% (expressed as 0.07)
Time = 5 years
Plugging in these values into the formula:
Interest = 10000 × 0.07 × 5
= 3500
The total amount Tom would receive on his investment would be the sum of the principal and the interest:
Total amount = Principal + Interest
= 10000 + 3500
= 13500
Therefore, Tom would receive a total amount of K13500 on his investment.
To calculate the total amount Tom would receive on his investment at a simple interest rate, we can use the formula:
Total Amount = Principal + (Principal * Rate * Time)
Given:
Principal (P) = K10000
Rate (R) = 7% = 7/100 = 0.07
Time (T) = 5 years
Let's calculate the total amount:
Total Amount = 10000 + (10000 * 0.07 * 5)
= 10000 + (10000 * 0.35)
= 10000 + 3500
= K13500
Therefore, Tom would receive a total amount of K13500 on his investment.
To calculate the total amount Tom would receive on his investment, we need to use the simple interest formula:
Simple Interest = Principal × Rate × Time
In this case, the principal (initial investment) is K10000, the rate is 7% (or 0.07 as a decimal), and the time is 5 years.
So, the simple interest earned by Tom would be:
Simple Interest = K10000 × 0.07 × 5 = K3500
To find the total amount, we need to add the simple interest to the principal:
Total Amount = Principal + Simple Interest
= K10000 + K3500
= K13500
Therefore, Tom would receive a total amount of K13500 on his investment.