1. Sarah invests r350) for it years at a simple interest rate of \( 8 \% \), 2, Desermines - (a) the future velue of the jnyesthent. - (b) the simple interest recejved after 6 years
Upstudy AI Solution
Answer
Solution

Sign in to Unlock Answers for Free!
A Learning Platform Trusted by Millions of Real Students and Teachers.

Answered by UpStudy AI and reviewed by a Professional Tutor
Bonus Knowledge
To calculate the future value of Sarah's investment, you can use the formula for simple interest: \( \text{Future Value} = \text{Principal} + (\text{Principal} \times \text{Rate} \times \text{Time}) \). In Sarah's case, this would be \( \text{FV} = R350 + (R350 \times 0.08 \times 4) \). Therefore, the future value after 4 years is R420. For the simple interest received after 6 years, you can use the same formula for interest: \( \text{Simple Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \). Here, it would be \( \text{SI} = R350 \times 0.08 \times 6 \), resulting in a total simple interest of R168 earned after 6 years.