Question

Colin invests £1100 into his bank account. He receives 5% per year simple interest. How much will Colin have after 3 years? Give your answer to the nearest penny where appropriate.

Answer 1

Principal Amount= £1100 , Rate= 3%, Time= 3 years

Simple Interest= (P*R*T)/100

=> Simple Interest= (1100*3*3)/100

=> Simple Interest= 16500/100

=> Simple Interest= £165

=> Total Amount= £1100+£165

=> Total Amount= £1265