SOLUTION: Tom invested $8000 for 3 years at a rate of 4% . How much simple interest would he have earned and how much does the bank give him back after 3 years?
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Question 1110648: Tom invested $8000 for 3 years at a rate of 4% . How much simple interest would he have earned and how much does the bank give him back after 3 years? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! Tom invested $8000 for 3 years at a rate of 4% . How much simple interest would he have earned and how much does the bank give him back after 3 years?
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Simple interest value equation::
V(t) = P(1+r*t)
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V(3) = 8000(1+0.04*3)
V(3) = 8000(1.12)
V(3) = $8960
Interest = $960
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Cheers,
Stan H.
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