Question

luka invests £1500.
At the end of the first year, 2% interest is added.
At the end of the second year, after interest has been added, the investment is worth £1606.50.

Find the interest (as a percentage) which has been added at the end of the second year.

Answer 1

Answer:

5% interest is added at the end of the 2nd year.

Step-by-step explanation

At the end of the first year his investment is worth =

1500 × 102/100

= 1530

So, Interest added in the 2nd year

= 1606.50 - 1530

= 76.50

Interest in %

= (76.50/ 1530) ×100

= 5 %

See,

2 % of 1500 is 30

Luca's investment becomes 1500+30 at the end of 1 year.

Now he gets interest on 1530.

it's given that his investment is worth 1606.50 at the end of the 2nd year. It means the interest he got in the 2nd year is 1606.50 - 1530 = 76.50. which is 5% of 1530.