If the principal is $800 and the rate of interest is 4% per annum, what will be the total amount after 3 years at simple interest?

1 question

1 item

Q: If the principal is $800 and the rate of interest is 4% per annum, what will be the total amount after 3 years at simple interest?

Solution: Using the simple interest formula, Total Amount = Principal + SI = 800 + (800 * 4 * 3) / 100 = $840.

Steps: 9

Step 1: Identify the principal amount, which is $800.
Step 2: Identify the rate of interest, which is 4% per annum.
Step 3: Identify the time period, which is 3 years.
Step 4: Use the simple interest formula: Simple Interest (SI) = (Principal * Rate * Time) / 100.
Step 5: Substitute the values into the formula: SI = (800 * 4 * 3) / 100.
Step 6: Calculate the simple interest: SI = (800 * 12) / 100 = 9600 / 100 = $96.
Step 7: Calculate the total amount using the formula: Total Amount = Principal + Simple Interest.
Step 8: Substitute the values: Total Amount = 800 + 96.
Step 9: Calculate the total amount: Total Amount = $896.