If the principal is $2000 and the rate of interest is 4% per annum, what will be

If the principal is $2000 and the rate of interest is 4% per annum, what will be the total amount after 5 years at simple interest? (2000)

If the principal is $2000 and the rate of interest is 4% per annum, what will be the total amount after 5 years at simple interest? (2000)

Step 1: Identify the principal amount (P), which is $2000.
Step 2: Identify the rate of interest (r), which is 4% per annum.
Step 3: Identify the time period (t), which is 5 years.
Step 4: Calculate the simple interest (SI) using the formula SI = P * r * t / 100.
Step 5: Substitute the values into the formula: SI = 2000 * 4 * 5 / 100.
Step 6: Calculate SI: 2000 * 4 = 8000; then 8000 * 5 = 40000; finally, 40000 / 100 = $400.
Step 7: Add the simple interest to the principal to find the total amount (A): A = P + SI.
Step 8: Substitute the values: A = 2000 + 400.
Step 9: Calculate the total amount: 2000 + 400 = $2400.

Simple Interest Calculation – Understanding how to calculate simple interest using the formula SI = P * r * t / 100 and how to find the total amount after interest is applied.