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Calculate the amount of interest on an investment of AED 227,283 at 8% simple interest for...

Calculate the amount of interest on an investment of AED 227,283 at 8% simple interest for 6 years.

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Answer #1

To calculate amount of interest on investment we will use simple interest formula, that is.

A = P(1 + rt)

We have, P = 227,283

r = 8%

t = 6 years

At first we will calculate amount after 6 years.

A = 227,283(1 + (0.08)(6)) = 227,283(1 + 0.48)

= 227,283(1.48) = 336,378.84

Now we can calculate amount of interest simply by substracting principle amount from it, that is.

A - P = 336,378.84 - 227,283 = 109,095.84

Therefore after 6 years amount of interest on investment of AED 227,283 is AED 109,095.84

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