Ama deposited 5,000.00 in a fixed deposit for 3 years in an account with 8% simple interest per anum. What is the profit at the end of the 3rd year as well as the total amount?
To find the profit, we can use the formula for simple interest:
Profit = Principal * Rate * Time
Given that the principal (P) is $5,000, the rate (R) is 8% or 0.08 expressed as a decimal, and the time (T) is 3 years, we can substitute these values into the formula:
Profit = 5,000 * 0.08 * 3
Profit = $1,200
Therefore, the profit at the end of the 3rd year is $1,200.
To find the total amount, we need to add the principal and the profit together:
Total Amount = Principal + Profit
Total Amount = 5,000 + 1,200
Total Amount = $6,200
Therefore, the total amount at the end of the 3rd year is $6,200.
To calculate the profit and total amount at the end of the 3rd year for a fixed deposit with 8% simple interest per annum, we can use the following formula:
Profit = Principal * Rate * Time
Total Amount = Principal + Profit
Given data:
Principal (P) = $5,000.00
Rate (R) = 8% = 0.08 (as a decimal)
Time (T) = 3 years
Step 1: Calculate the profit
Profit = P * R * T
= $5,000.00 * 0.08 * 3
= $1,200.00
So, the profit at the end of the 3rd year is $1,200.00.
Step 2: Calculate the total amount
Total Amount = Principal + Profit
= $5,000.00 + $1,200.00
= $6,200.00
Therefore, the total amount at the end of the 3rd year is $6,200.00.