Maino invested 5000 in a term deposit account paying simple interest of 5% annually. How much was his investment worth after 10 year?
To calculate the worth of the investment, we multiply the original investment amount by the interest rate and the number of years.
The interest earned per year is calculated by multiplying the original investment amount by the interest rate:
5000 * 0.05 = $250 per year
Since the interest is paid annually, after 10 years the investment would have earned:
250 * 10 = $2500
Adding the earned interest to the original investment amount, we get the total worth of the investment after 10 years:
5000 + 2500 = $<<5000+2500=7500>>7500
Therefore, Maino's investment would be worth $7500 after 10 years.
To calculate the amount of Maino's investment after 10 years, we can use the formula for simple interest:
I = P * (1 + (r * t))
Where:
I = Investment worth after the specified time period
P = Principal amount (initial investment)
r = Rate of interest (as a decimal)
t = Time period (in years)
In this case:
P = $5000
r = 5% = 0.05 (as a decimal)
t = 10 years
Plugging these values into the formula, we have:
I = 5000 * (1 + (0.05 * 10))
I = 5000 * (1 + 0.5)
I = 5000 * 1.5
I = $7500
Therefore, after 10 years, Maino's investment will be worth $7500.
To calculate the amount Maino's investment is worth after 10 years with simple interest, we use the formula:
A = P(1 + rt)
Where:
A = the final amount
P = the principal amount (initial investment)
r = the annual interest rate (in decimal form)
t = the number of years
In this case, the principal amount (P) is $5000, the interest rate (r) is 5% or 0.05, and the number of years (t) is 10.
Plugging these values into the formula:
A = 5000(1 + 0.05 * 10)
A = 5000(1 + 0.5)
A = 5000(1.5)
A = $7500
Therefore, after 10 years, Maino's investment will be worth $7500.