Billy invests £800 for 5 years in a savings account. By the end of 5 years he has received a total of £96. Work out the annual rate of simple interest.
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2
ANSWER....
Invested Rupees = 800 Rs.
Time = 5 Years
Total Amount = 960 Rs.
Total Amount = Invested Amount + Interest Amount
960 = 800 + I.A
I.A = 960 - 800 = 160 Rs
For 5 Years 160 Ruppes interest
For one year = 160 / 5
= 32 Rs.
Annual Rate of interest = ( 32 / 800 ) / 100
Annual Rate of interest = 4%
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0
Answer:
Step-by-step explanation:
2.4%
Step-by-step explanation:
Rate R = 100 x I /P x T
Where
I = interest £96
P = principal £800
T = time 5 yrs
Therefore
R = 100 x 96 /800 x 5
Multiply through
= 9600/4000
Cancel out zeros, we’re left with
= 96/40
Divide both the numerator and denominator by 4
= 24/10
Divide both the numerator and denominator by 2
= 12/5
= 2 2/5 % or 2.4%
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