https://file.aiquickdraw.com/mathbot/file/1727915997665hpn4eafb.jpg

The image contains a financial problem that reads:

"Your mother invested ₱18,000 in fixed income securities that yield 6% annually for two years."

To solve this, we need to determine the amount of interest earned on the investment over two years.

### Solution:
The formula for simple interest is:

\[
I = P \times r \times t
\]

Where:
- \( I \) is the interest
- \( P \) is the principal amount (\(₱18,000\))
- \( r \) is the annual interest rate (6% or 0.06)
- \( t \) is the time in years (2 years)

Substituting the values:

\[
I = 18,000 \times 0.06 \times 2
\]
\[
I = 18,000 \times 0.12
\]
\[
I = 2,160
\]

So, the interest earned over two years is ₱2,160.

### Total amount after 2 years:
The total amount (principal + interest) is:

\[
A = P + I = 18,000 + 2,160 = ₱20,160
\]

The total amount after two years will be ₱20,160.

---

Do you need further explanation on any part? Here are some related questions to consider:

1. What is the difference between simple and compound interest?
2. How would the calculation change if the interest were compounded annually?
3. How can you calculate the future value if the interest rate changes after the first year?
4. How does the time period affect the total amount earned from fixed income securities?
5. What is the formula for calculating interest when the rate is compounded monthly?

**Tip:** Always make sure to verify whether the interest is compounded or simple when dealing with financial investments. This impacts how much you earn over time.

Your mother invested ₱18,000 in fixed income securities that yield 6% annually for two years.

Learn how to calculate the interest earned on a ₱18,000 investment in fixed income securities with a 6% annual yield for two years. This problem involves basic simple interest calculations, suitable for students in Grades 6-8.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation