Answer:
$5,000
Step-by-step explanation:
2,000÷5%=40,000
40,000÷8= 5,000
$5,000
The investment can be calculated by using simple interest formula.
Mrs baxters investment worth after 8 year is $2,800.
Given:
Time is [tex]t=8\:\rm year[/tex]
Principal amount [tex]P=2000 \[/tex]
Rate of interest [tex]r=5\: %[/tex]
Convert the percent into decimal.
[tex]r=\frac{5}{100}=0.05[/tex]
The simple interest formula can be written as,
[tex]A=P(1+rt)[/tex]
Substitute the value in above equation.
[tex]A=2000(1+0.05\times 8)\\=2800\:\[/tex]
Thus, Mrs baxters investment worth after 8 year is $2,800.
Learn more about Simple Interest here:
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