Mr Jason invested $4787 at 5% per annum on simple interest. After  77  months, he withdraws all the money. How much money does he receive?

To determine how much money Mr. Jason receives after 77 months, we'll calculate the simple interest and then add it to the initial investment.

**Simple Interest Formula:**

\[
\text{Simple Interest (SI)} = \frac{P \times R \times T}{100}
\]

where:
- $ P $ is the principal amount (initial investment) = $4787
- $ R $ is the rate of interest per annum = 5%
- $ T $ is the time period in years = 77 months = $\frac{77}{12}$ years

### Step 1: Convert the time to years
\[
T = \frac{77}{12} \approx 6.42 \text{ years}
\]

### Step 2: Calculate the simple interest
\[
\text{SI} = \frac{4787 \times 5 \times 6.42}{100} = \frac{153421.7}{100} = 1534.217
\]

### Step 3: Calculate the total amount received
The total amount Mr. Jason receives is the principal amount plus the interest.

\[
\text{Total Amount} = P + \text{SI} = 4787 + 1534.217 = 6321.217
\]

So, Mr. Jason receives **$6321.22** after 77 months (rounded to two decimal places).

Would you like more details on this calculation, or do you have any questions?

Here are some related questions to explore:

1. What would the interest be if the investment was for 60 months?
2. How would the amount change if the interest rate was 4% instead of 5%?
3. How is compound interest calculated, and how would it affect this investment?
4. What if the investment period was 100 months? How much would Mr. Jason receive?
5. What would the final amount be if Mr. Jason had invested $5000 instead?
6. How does the length of time impact the interest earned in simple interest?
7. What if Mr. Jason had withdrawn the money after 1 year? How much would he receive?
8. What are the pros and cons of simple interest compared to compound interest?

**Tip:** When working with interest calculations, be precise with time conversions, especially when the time is not in whole years.

Learn how to calculate simple interest when Mr. Jason invests $4787 at an annual rate of 5% and withdraws the money after 77 months. Includes a detailed step-by-step solution using the simple interest formula. Suitable for students and anyone interested in financial mathematics.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation