A man invested $10,500 for 7 years at 5 ½ % per annum simple interest.

(A) Determine the simple interest payed

(B) Calculate the amount of money he collected after the period of 7 years

Money invested by a man = $10,500

No.of years for which he invested his money = 7

Rate of interest = 5.5%

We know that :

[tex] \tt \: Simple \: interest = \frac{Principal × Rate × Time}{100} [/tex]

Principal = 10500

Rate = 5.5%

Time = 7 years

Simple interest the man payed :

[tex] = \tt\frac{10500 \times 55 \times 7}{10 \times 100} [/tex]

[tex] = \tt \frac{4042500}{1000} [/tex]

[tex] \color{plum}=\tt 4042.50[/tex]

Therefore, the simple interest payed by the man = $4042.50

Money invested by the man (principal) = $10,500

The simple interest he payed = $4042.50

We know that :

[tex]\tt \: amount = principal + interest[/tex]

The amount the man collected after a period of 7 years :

[tex] = \tt10500 + 4042.50[/tex]

[tex] =\tt 14520.50[/tex]

Thus, amount = $14520.50

Therefore the amount he collected after a period of 7 years = $14520.50

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