You want to invest $8,000 over a 60-month period at 312% simple interest. What is the total value of this investment at maturity?
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Money invested (Principal amount), P = $8000
Time period for which money is invested, T = 60 months = 60/12 years = 5 years
Please check the simple interest rate whether it is
312% or 3.12%. I am providing solution for both values, use the one
which is right
Simple interest rate = 312% per year
Total interest earned, I = Principal * Rate* Time
I = 8000 * 312% * 5
I = $124,800
Total value of the investment at maturity = Principal + Interest earned
Maturity amount = $8000+$124800
Maturity amount = $132,800
If interest rate is 3.12% instead of 312%,
then, I = 8000 * 3.12% * 5
I = $1248 and
Maturity amount, A = $8000 + $1248
Maturity amount = $9248
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