2006-06-19 04:53:19 · 11 answers · asked by Anonymous in Science & Mathematics ➔ Mathematics
4,000 x .06x 5 = your answer
2006-06-19 04:56:04 · answer #1 · answered by Fire 2 · 0⤊ 0⤋
Simple interest is by definition A(t) = A(0) * (1 + t * r) where A(t) is total amount after t years, r is the interest rate, and A(0) is the original amount invested.
So $4000 at 6% for 5 years would be:
a) A(5) = 4000 * (1 + 5 * 0.06) = $5200 total which is $1200 of interest
Sorry lost_but_not..., since the original question doesn't use compound in any way, your answers and reasoning have no bearing and are incorrect.
If the interest is reinvested, then the question needs to be compound interest, not simple interest, and will need to include how often it is compounded.
2006-06-19 05:32:03 · answer #2 · answered by Nate 3 · 1⤊ 0⤋
Honestly these are all accurate answers, even though they are all different.. why?
You never stated how often the intrest would be compounded.. yearly, quarterly, monthly, or not at all.. so just for fun I will give you all for and the link I used to come up with the answers..
so you can verify the findings..
yearly = 5352.90 - 4000 = 1352.90
quarterly = 5383.47 - 4000 = 1383.47
monthly = 5395.40 - 4000 = 1395.40
and if by "simple" you meant never compounding at all .. the answer would not be able to be found because it is a contradiction to give an interest and not figure in the amount at which it can grow.. in this case 6 percent. interest must compound over time .. or you would still have $4000 forever despite wanting it to grow 6%
vague question.. = complicated answer.
I don't mean to sound so combative about it.
That's how interest works..
Here's the link.. it is a simple one.. do the math (plug in the numbers) to figure out what you mean by your question .. because if you are getting so many different answers that only prooves the question was to confusing for us :)
http://partners.financenter.com/principal/calculate/us-eng/savings02.fcs
P.S. Sorry Alfred.. you failed my economics class.. summer school is in your future.. boooo! :)
2006-06-19 05:18:05 · answer #3 · answered by lost_but_not_hopeless 5 · 0⤊ 1⤋
Alfred will get $1200 at the end of 5 years.
2006-06-19 05:00:45 · answer #4 · answered by zabardast 1 · 0⤊ 0⤋
Simple interest is calculated on the original principal only
Simple Interest = p * i * n
where:
p = principal (original amount borrowed or loaned)
i = interest rate for one period
n = number of periods
Example: You invest $4,000 for 5 years at 6% simple annual interest.
interest = p * i * n = 4,000 * .06 * 5 = $1,200
2006-06-19 04:57:58 · answer #5 · answered by Robin the Electrocuted 5 · 1⤊ 0⤋
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2016-10-14 07:33:15 · answer #6 · answered by Anonymous · 0⤊ 0⤋
$1200
2006-06-19 05:42:21 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Simple interest..I'm sorry, I misread that. *deleting answer*
2006-06-19 04:56:37 · answer #8 · answered by mye77 2 · 0⤊ 0⤋
He will receive : 1,200$
2006-06-19 04:58:40 · answer #9 · answered by Nikki 1 · 0⤊ 0⤋
1,353 dollars
2006-06-19 04:59:29 · answer #10 · answered by ka5flm 2 · 0⤊ 1⤋