Shane invests $11,000 in bonds that earn simple interst of 6%. The interest is payable at the maturity of bonds after 5yrs. Find the total amount that shane will receive after 5yrs. PLZ SHOW WORK
To find the total amount that Shane will receive after 5 years, we need to calculate the simple interest and add it to the principal amount.
The formula to calculate simple interest is:
Simple Interest = Principal * Rate * Time
Where:
Principal = $11,000
Rate = 6% = 0.06 (converted to decimal)
Time = 5 years
Plugging in the values:
Simple Interest = $11,000 * 0.06 * 5
Simple Interest = $3,300
Now, to find the total amount that Shane will receive after 5 years, we add the simple interest to the principal:
Total Amount = Principal + Simple Interest
Total Amount = $11,000 + $3,300
Total Amount = $14,300
Therefore, Shane will receive a total amount of $14,300 after 5 years.