Question

Edin has £300 in his saving account

his bank offers him a fixed 5% simple interest rate per annum

for a period of 3 years

how much interest will he have earned after 3 years

Answer 1

Step-by-step explanation:

Edin has £300 in his savings account his bank offers him a fixed 5% simple interest rate per annum, for 3 years

The interest that he will have earned after 3 years is £45

Step-by-step explanation:

Amount Edin has P = £300

Rate of Interest r = 5%

Period n = 3 years

The interest earned in 3 years will be

\boxed{I=\frac{nPr}{100}}

I=

100

nPr

\implies I=\frac{3\times 300\times 5}{100}⟹I=

100

3×300×5

\implies I=3\times 3\times 5⟹I=3×3×5

\implies I=45⟹I=45 £

Therefore, the interest earned is £45

Sum of money = £ 300

Rate of percentage of money = 5%

Time = 3 yrs

Now the Simple Interest =

(sum \times rate \times time ) \div 100

=£ 300 × 5 × 3 / 100

=£ 45

Hope this Answer helps you to gain Knowledge in Profit and Loss