Mr Shane invested $2826 at 5% per annum on simple interest. After  4  months, he withdraws all the money. How much money does he receive?

To determine the amount of money Mr. Shane receives after 4 months, we need to 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) = $2826
- $ R $ is the rate of interest per annum = 5%
- $ T $ is the time period in years = 4 months = $\frac{4}{12}$ years

### Step 1: Calculate the time in years
\[
T = \frac{4}{12} = \frac{1}{3} \text{ years}
\]

### Step 2: Calculate the simple interest
\[
\text{SI} = \frac{2826 \times 5 \times \frac{1}{3}}{100} = \frac{2826 \times 5 \times 1}{300} = \frac{14130}{300} = 47.1
\]

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

\[
\text{Total Amount} = P + \text{SI} = 2826 + 47.1 = 2873.1
\]

So, Mr. Shane receives **$2873.10** after 4 months.

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 6 months?
2. How would the amount change if the interest rate was 6% instead of 5%?
3. What is the formula for compound interest, and how does it differ from simple interest?
4. How much more would Mr. Shane receive if the investment was for a full year?
5. What would the final amount be if Mr. Shane had invested $3000 instead?
6. How does the investment duration impact the total interest earned?
7. What if the interest was compounded monthly? How would the calculation change?
8. What are some advantages of simple interest over compound interest?

**Tip:** Always double-check the conversion of time periods, especially when dealing with months in interest calculations.

Learn how to calculate the total amount Mr. Shane receives after investing $2826 at 5% simple interest for 4 months. Includes step-by-step calculation of simple interest and the total amount received.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation