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10 October, 12:17

Work out the balance for £5000 invested for 5 years at 7% per annum

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  1. 10 October, 15:54
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    Given:

    Principal : 5,000

    Interest rate : 7% per annum

    Term : 5 years

    Simple interest is computed by multiplying the principal, the interest rate, and the term.

    Simple Interest = Principal * interest rate * term

    S. I. = 5,000 * 7% * 5years

    S. I. = 350 * 5 years

    S. I. = 1,750

    An investment of 5,000 will earn a total of 1,750 within 5 years at 7% per annum.
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