The invested amount will be k 521.56 after 4 years 8 months if Mr. Kabi invests k375 at a simple interest rate of 8.375 per annum.
What is simple interest?
It is defined as the interest based on the principal amount, it does not include the compounded amount. The interest calculates on the initial amount or borrowed amount.
It is given that:
Mr Kabi invest k375 at a simple interest rate of 8.375 per annum
The invested amount = k 375
Rate of interest = 8.375 per anum
Rate of interest = 8.375/12 per month
Rate of interest = 0.6979 per month
Number of months = 4x12 + 8 = 56
As we know, the formula for the simple interest is given by:
A = P(1 + rt)
A = 375(1 + 0.6979×56)
A = k 521.56
Thus, the invested amount will be k 521.56 after 4 years and 8 months if Mr. Kabi invests k375 at a simple interest rate of 8.375 per annum.
Learn more about the simple interest here:
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