Question

`R6000` is invested at `6.5%` simple interest. What is the final amount available after `3` years?

Answer 1

`R1170`

Explanation:

Apply the formula for Simple Interest.

`SI = (PRT)/100`

`P=` principal ( the starting amount)
`R=` rate of interest
`T=` time in years

`SI = (6000xx6.5xx3)/100`

`SI = R1170`

However the total amount available includes the original amount and the interest earned.

Amount = `R6000+R1170 = R7170`