Subjects finance

Simple Interest 8Fb74F

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1. **State the problem:** Riley invests money in a savings account with 4% simple interest per year. After 5 years, the total interest earned is 360. We need to find the total value of the investment after 5 years. 2. **Formula for simple interest:** $$I = P \times r \times t$$ where - $I$ is the interest earned, - $P$ is the principal (initial investment), - $r$ is the annual interest rate (as a decimal), - $t$ is the time in years. 3. **Given values:** - $I = 360$ - $r = 4\% = 0.04$ - $t = 5$ 4. **Find the principal $P$:** $$360 = P \times 0.04 \times 5$$ 5. **Simplify the right side:** $$360 = P \times 0.2$$ 6. **Divide both sides by 0.2 to isolate $P$:** $$P = \frac{360}{0.2}$$ 7. **Calculate $P$:** $$P = 1800$$ 8. **Find the total value after 5 years:** Total value = Principal + Interest $$= 1800 + 360 = 2160$$ **Final answer:** The total value of Riley's investment after 5 years is **2160**.