4500 was invested at a 40 8 simple interest for 300 days ho

4500 was invested at a 40 / 8% simple interest for 300 days. how many interest was earned? what was the total amount of Investments?

Solution

Amount invested = 4500

Annual interest rate = 40/8% = 5% = 0.05

Daily interest rate = 0.01369% = 0.0001369

Period of investment = 300 days

Future value of investment = Amount invested * (1+r)ⁿ

Total amount at the end of 300 days = 4500*1.0001369³⁰⁰ = 4688.77

Interest earned = 4688.77 - 4500 = 188.77

Total amount of investments = 4688.77