MNas invested a sum of $1.5m at 10% interest for 10 years simple interest. Determine the total amount receivable by MNas after 10 years.
Solution.
If we adopt the above approach, then we can compute interest in tabular form as follows
Solution.
If we adopt the above approach, then we can compute interest in tabular form as follows
From the above table, it can be seen that the total interest (or returns on investment) that MNas will receive after 10 years is $2.25m and when this is added back to his invested capital, he will ultimately receive $3.75m at the end of the ten-year period on investment.
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