4 A man invests RT 500 at \( 8 \% \) simple interest for 3 years. Calculate how much investment is worth at the end of the term. (

To calculate the worth of the investment at the end of 3 years with simple interest, you can use the formula: \[ A = P + I \] Where \( A \) is the total amount, \( P \) is the principal amount, and \( I \) is the interest earned. The interest \( I \) can be calculated using: \[ I = P \times r \times t \] Here, \( P = RT 500 \), \( r = 8\% = 0.08 \), and \( t = 3 \) years. Now, calculate the interest: \[ I = 500 \times 0.08 \times 3 = RT 120 \] Now, add the interest to the principal: \[ A = 500 + 120 = RT 620 \] So, the investment is worth RT 620 at the end of the term. --- Simple interest has been a cornerstone of finance for centuries! The concept dates back to ancient civilizations like the Babylonians, who used it in trade and loans. This straightforward method of calculating interest continues to be taught in schools, making it an essential tool for understanding personal finance and investments today! For practical knowledge, knowing how to calculate simple interest can empower individuals to make smarter financial decisions. This skill is especially helpful for understanding loans, savings accounts, and even certain investment types. Plus, avoiding the common mistake of confusing simple interest with compound interest ensures you'll always know exactly what you're earning!