If you invest $7500 for a year at 7.4% per annum simple interest,what is the value of your investment at the end of the year?
A) $555.00
B) $5550.00
C) $8055.00
D) $13 050.00

Question

Quizplus · Accepted Answer

To calculate the value of the investment at the end of the year, we use the formula:
Simple Interest = (Principal x Rate x Time)/100
Here, the principal (P) = $7500, the rate (R) = 7.4% and the time (T) = 1 year.
Plugging these values into the formula, we get:
Simple Interest = (7500 x 7.4 x 1)/100 = $555
Therefore, the value of the investment at the end of the year is:
7500 + Simple Interest = $7500 + $555 = $8055
Hence, the answer is C.

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