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If Peter invests R1 000,00 at 8% simple interest per annum paid quarterly. What is the interest earned in a year?
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If Peter invests $R1 000,00$ at $8\%$ simple interest per annum paid quarterly (each quarter year).

We adjust the values in the formula as follows:

1 year = 4 quarters

$8% \text{per year} = \dfrac{8}{4} = \dfrac{2}{1} = 2\% \text{per quarter}$ (8% divided by 4 = 2%)

$SI = P \times r \times n$

$SI = 1000 \times 0.02 \times 4$

$SI = R80.00$ per year (interest earned)

Should he invest the $R1 000,00$ at $8\%$ simple interest per annum paid quarterly, then the interest after ten years should be calculated as follows:

$SI = P \times r \times n$

$SI = 1000 \times 0.02 \times 40$

$SI = R800.00$
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