A sum of 5000 earns 8 percent a year in simple interest for 3 years. What is the accumulated amount?

1. Simple interest is worked out only on the initial amount invested. 2. Eight percent of 5000 is 400, so 400 is earned in each year. 3. Over 3 years that gives 400 times 3, which is 1200. 4. The accumulated amount is the principal amount plus the interest earned. 5. So the final value is 5000 plus 1200, which is 6200. 6. Answering 5400 counts only one year of interest instead of three. _Source: Siyavula Mathematics Grade 11 (Everything Maths, CC BY 4.0), Chapter 9: Finance, growth and decay_