Jabu's investment of R2 200 eamed R528 in two years. a. Calculale the simple interest rate for this investment, b. If she decides to invest the total amount (original principal amount plus interest) for another two years at the same rate. what interest will she earn ov the second two years. c. What is the difference in interest earned over the first two years, compared with interest earned over the second two years?

To calculate the simple interest rate for Jabu's investment, you can use the formula for simple interest: \[ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \] Given that the interest earned (I) is R528, the principal (P) is R2,200, and the time (T) is 2 years, we rearrange the formula to solve for the rate (R): \[ R = \frac{I}{P \times T} = \frac{528}{2200 \times 2} = \frac{528}{4400} = 0.12 \] This converts to a percentage: \[ R = 0.12 \times 100 = 12\% \] So, the simple interest rate for Jabu's investment is 12%. Next, if she invests the total amount for another two years at the same rate, we first calculate the total amount after the first two years: \[ \text{Total Amount} = \text{Principal} + \text{Interest} = 2200 + 528 = R2,728 \] Now, we calculate the interest earned over the second two years: \[ \text{Interest} = P \times R \times T = 2728 \times 0.12 \times 2 = R654.72 \] Finally, to find the difference in interest earned, we compare the interest from the first two years (R528) with the interest earned over the second two years (R654.72): Difference: \[ 654.72 - 528 = R126.72 \] So, Jabu earns R126.72 more in interest during the second two years compared to the first two years. Did you know that the concept of simple interest dates back thousands of years? Ancient civilizations, including the Babylonians, used it for trade and loans. They understood how to lend and borrow effectively, which laid the groundwork for modern finance! For anyone looking to dive deeper into finance, consider "The Richest Man in Babylon" by George S. Clason. It's a fun and engaging read filled with timeless principles about saving and investing, presented through memorable parables set in ancient Babylon. Perfect for gaining financial wisdom while enjoying a good story!