Question

Colin invests £5000 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 1

hope its correct.......

Answer 2

Principle amount(P) =£5000

Time(T) =3 years

Rate of interest(R) = 10% p.a

Since, simple interest is asked,

Interest amount= PTR/100 will be the formula.

Interest amount = PTR/100

= (5000*3*10)/100

=£1500

Amount at the end of 3 years will be,

Amount = £5000+£1500

=£6500.