Respuesta :
Answer:
You will make an earning of $1 million dollers
Step-by-step explanation:
Investment of $5000 for 3years at the rate of interest 1.25% earns more interest amount.
What is simple interest?
"Simple interest is defined as the amount of interest which is given on a principal amount with fixed rate of interest and time period."
Formula used
Simple interest = (P × R × N) / 100
P = Principal
R = Rate of interest
T = Time period
According to the question,
Given,
Principal = $5000
Rate of interest = 1.75%
Time = 2years
Substitute the value in the formula we get,
Simple interest = (5000 × 1.75 × 2) / 100
= $175
Principal = $5000
Rate of interest = 1.25%
Time = 3years
Substitute the value in the formula we get,
Simple interest = (5000 × 1.25 × 3) / 100
= $187.5
Interest amount after 3 years is greater than 2years interest amount.
Hence, investment of $5000 for 3years at the rate of interest 1.25% earns more interest amount.
Learn more about simple interest here
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