Question

Colin invests £980 into his bank account. He receives 6% per year simple interest. How much will Colin have after 7 years? Give your answer to the nearest penny where appropriate.

Answer 1

Colin have £1391.6 after 7 years.

Step-by-step explanation:

Given principal = P = £ 980

Rate of interest = r = 6%

Time = t = 7 years

Simple interest = S. I = $\frac{PRT}{100} = \frac{980 \times 6 \times 7}{100} = 411.6$

Amount of money after 7 years = P + S.I = £980 + £411.6 = £1391.6

Hence, Colin have £1391.6 after 7 years.