Question

Daniel invests £2200 into his bank account.
He receives 5% per year simple interest.
How much will Daniel have after 2 years?
Give your answer to the nearest penny where appropriate.

Answer 1

S.I.=P×R×T/100

then,

P=2200

R=5%

T=2

S.I.= 2200×5×2/100

=22×5×2

=220

S.I.=£220

Total Amount will be S.I+Principal

=2200+220

=£2420