Question

Colin invests £1200 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

Answer:

Colin invests £1200 into his bank account. He receives 10% per year simple interest. How much will Colin have after 3 years? Give your answer to the nearest penny where appropriate.

Answer 2

1380£  will be money which receive after three years.

Step-by-step explanation:

• Given data

        Principle of money (P) = 1200 £

        Rate of interest per year (R) = 5%

        Time period (T) = 3 years

        Amount of money after 3 years (A) = Unknown

• We know the relation between amount , principle, time and rate of interest. Which are given below

        $\mathbf{A=P\left ( 1+\frac{R\times T}{100} \right )}$

• On putting respective value in above equation

        $\mathbf{A=1200\times \left ( 1+\frac{5\times 3}{100} \right )}$

        $\mathbf{A=1200\times \left ( 1+\frac{15}{100} \right )}$

        Amount (A) = 1200×1.15

• Amount (A) = 1380£ = This will be money which receive after three years.