Question

1. Paul invests £150 in a bank account paying 2% interest per annum for 10 years. Work out how much money he was in the account at the end of 10 years.

2. Sarah invests £2000 in a bank account paying compound interest at 3.5% per annum. Which of these calculations works out the amount of money is in her account at the end of 8 years.

3. Conor invests £600 in a savings account paying 12% compound interest per year. Work out the total amount of interest he will have received by the end of 4 years.

4. Hamza invests £160 in an ISA paying 2.6% compound interest per annum. Work out how much interest he will have been paid by the end of 10 years.

*great reward for answering correctly*

Answer 1

Answer:

Answer

Simple Interest I=

100

PNR

Here for first year,

P= Rs. 9,600

N=1 year

R=10%

So, Interest at the end of 1

st

year I=

100

9,600×1×10

= Rs. 960

Amount =P+I= Rs. 9,600+ Rs. 960= Rs. 10,560

Therefore, the amount at the end of the first year is Rs. 10,560.