Question

Kim places 500 pound in a bank account that pays 3 percent simple intrest per year
a: how much intrest will she earn each year
b:how much will she save in her account after 1 year

Answer 1

Step-by-step explanation:

Given Kim places 500 pound in a bank account that pays 3 percent simple interest per year  

• So we have Simple interest = Principal x Rate x Time / 100
•                       Or S.I = P x R x T / 100
•                                  = 500 x 3 x 1 / 100
• Or Interest I = 15 pounds
• So each year she will earn 15 pounds.
• So Amount = Principal + Interest
• Or A = P + I
•  A = 500 + 15
• Amount = 515 pounds after one year

Answer 2

Given :

Kim invested 500 pounds in a bank at 3% simple interest.

To Find :

Interest for 1 year.

Solution :

a. To find the interest for one year, we will use the formula,

$\text{Simple Interest}=\frac{PRT}{100}$

Where,

P = Principal amount = 500 pounds

R = Rate of interest = 3%

T = Time = 1 year

$S.I.=\frac{500\times 3\times 1}{100}$

  = 5 × 3 × 1

  = 15 pounds

She will earn 15 pounds each year.

b. After one year she will save

= Principal amount + Interest of one year

= 500 pounds + 15 pounds

= 515 pounds

She will save 515 pounds after 1 year.