Question

Dan invests £2500 into his bank account.
He receives 5% per year simple interest.
How much will Dan have after 2 years?
Give your answer to the nearest penny where appropriate.

Answer 1

Answer:

Dan pays £3000 to the bank.

Answer 2

Answer :

To Find :-

The amount that dan will get after 2 years.

Given :-

• Principal = £ 2500

• Time = 2 years

• Rate of interest = 5% p.a.

We know :-

⠀⠀⠀⠀⠀⠀⠀Fornula for Simple interest :-

$\boxed{\underline{\bf{SI = \dfrac{P \times R \times t}{100}}}}$

Where :-

• P = Principal
• R = Rate of interest
• t = Time Taken
• SI = Interest

Concept :-

To find the amount after 2 years, First we have to find the interest in 2 years.

So , by using the formula and given values , we can find the interst gained.

After finding the interest , we can use the formula for Amount , to find out the required value.

Formula for Amount :-

$\boxed{\underline{\bf{A = P + SI}}}$

Where :-

• A = Amount
• P = Principal
• SI = Interest

Solution :-

⠀⠀⠀⠀⠀⠀⠀To find the Interest :-

By using the formula and substituting the values in it, we get :-

$:\implies \bf{SI = \dfrac{P \times R \times t}{100}} \\ \\ \\ :\implies \bf{SI = \dfrac{2500 \times 5 \times 2}{100}} \\ \\ \\ :\implies \bf{SI = \dfrac{2500 \times 10}{100}} \\ \\ \\ :\implies \bf{SI = 25\times 5 \times 2} \\ \\ \\ :\implies \bf{SI = 250} \\ \\ \\ \therefore \purple{\bf{Interest = 250}}$

Hence, the interest gained is £ 250.

Now ,

⠀⠀⠀⠀⠀⠀To find the amount after 2 years :-

We know :-

• Principal = £ 2500

• Interest = £ 250

Using the formula and substituting the values in it, we get :-

$\boxed{\begin{minipage}{7 cm} :\implies \bf{A = P + SI} \\ \\ :\implies \bf{A = 2500 + 250} \\ \\ :\implies \bf{A = 2750} \\ \\ \therefore \purple{\bf{Amount = 2750}} \end{minipage}}$

Hence, the Amount after 2 years is £ 2750.