6. Maresa earns R20 000 per month. She decides to invest \( \frac{1}{10} \) of her money at \( 8 \% \) simple interest per year. a) What amount does she invest? b) How much interest will she earn at the end of the year? c) How much money will be in her investment after 5 years?
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Maresa invests R2 000, which is \( \frac{1}{10} \) of her monthly earnings of R20 000. This amount opens the door to potential earnings through interest, making it a smart move in her financial journey! At the end of the year, she will earn R160 in interest, calculated using the simple interest formula: \( \text{Interest} = P \times r \times t \), where \( P \) is R2 000, \( r \) is 0.08 (8%), and \( t \) is 1 year. That’s not too shabby for letting her money work for her! After 5 years, her investment would grow to R3 000, since she earned R160 annually — a total of R800 in interest over those 5 years. So, it’s R2 000 plus R800, leading to R2 800 strategically set aside for her future. Time really does pay off, doesn’t it?