3 unit maths question

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hey,
there's this year 12 question (well, actually, my sister is in year 12):
At the end of each year, a man wrote down the value of his investment of $10 000 dollars, invested at 6.5% per annum simple interest for five years. he then added up these five values and thought that he was very rich.
a) what was the total he arrived at?
b) what was the actual value of his investment at the end of five years?

Thanks
Sad

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Hi there
That seemed a bit easy for a year 12 question - if that's the final year of school where you live.
I found the answer to be $13 700.87 (2dp). However I just used the compound interest formula, not working out simple interest for each year. I think it did the same thing.
Hope this helped! Very Happy

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thanks -
actually, i have absolutely no idea - you see, i'm only in year 9!
just kindof interested me

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Re: 3 unit maths question

Mandso wrote:

hey,
there's this year 12 question (well, actually, my sister is in year 12):
At the end of each year, a man wrote down the value of his investment of $10 000 dollars, invested at 6.5% per annum simple interest for five years. he then added up these five values and thought that he was very rich.
a) what was the total he arrived at?
b) what was the actual value of his investment at the end of five years?

Thanks

Simple interest means I=Prt:
10000(.065)(5)=3250.

10000+3250=13250.

And I don't know how (a) is supposed to be arrived at. I think (a) is supposed to mean he computed compound interest and compounded his interest annually for five years.

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okay - thanks

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Actually, you're wrong.

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okay, i'm somewhat confused here - maybe it's safest to see what my sister thinks
then i'll see whats right

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yr 1 10,000x6.5%=650
yr 2 10,000x6.5%=650
yr 3 10,000x6.5%=650
yr 4 10,000x6.5%=650
yr 5 10,000x6.5%=650

total....................3250

initial investment 10,000 + 3250=13250

I think the question is badly worded and actually means the interest from each year was reinvested.

Quote:

At the end of each year, a man wrote down the value of his investment of $10 000 dollars

yr 1
10,000x6.5%=650
yr 2
(10,000+650)=(10,650x6.5%)=695.25
yr3
(10,650+695.25)=(11345.25X6.5%)=737.44

Mandso you can work out the rest i am sure

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thankyou, people

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3 unit maths question

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