Question

Colin invests £1100 into his bank account. He receives 5% per year simple interest. How much will Colin have after 6 years? Give your answer to the nearest penny where appropriate.

Answer 1

Answer: 374.09

Step-by-step :

5% of 1100£ is 1155£ and 5% of 1155£ is 1212.75£ and 5% of this 1273.38£ ,5%of this 1337.05£ , 5% this 1403.90£ ,5% of this 1474.09£ therefore 374.09

Answer 2

Principal(P) = £1100

Rate of interest(R) = 5%

Time (t) = 6 years

$amount(a) =p (1 + \frac{tr}{100})$

$a = 1100(1 + \frac{6 \times 5}{100} )$

$a = 1100(1 + \frac{30}{100})$

$a = 1100( \frac{100}{100} + \frac{30}{100} )$

$a = 1100( \frac{130}{100})$

$a = 11( 130)$

$a = 1430$

We know that 1 pound = 100 pence

So, 1430 pounds = 1430 * 100 = 143000 pence

Therefore money with Colin after 6 years will be 143000 pence.