Question

Tessa has Rs.100 in a savings account that earns 10% interest per year. The interest is not compounded. How much will she have in 3 years?​

Answer 1

Given: Tessa has Rs. 100 in a savings account that earns 10% interest per year.

To find: The interest she will have in 3 years.

Solution:

• The given question involves a principle amount, a rate of interest and a time period.
• According to the formula of simple interest,

         $I = \frac{P * R * T}{100}$

• Here, I is the simple interest, P is the principle amount, R is the rate of interest and T is the time period.

• So, $I = \frac{100 * 10 * 3}{100}$

                 $= Rs.30$

• The amount that she receives at the end of three years will be,

        $Rs. 100 +Rs. 30 = Rs. 130$

Therefore, Tessa will have Rs. 130 in 3 years.

Answer 2

Answer:

Given: Tessa has Rs. 100 in a savings account that earns 10% interest per year.

To find: The interest she will have in 3 years.

Solution:

The given question involves a principle amount, a rate of interest and a time period.According to the formula of simple interest,

         I = \frac{P * R * T}{100}I=100P∗R∗T

Here, I is the simple interest, P is the principle amount, R is the rate of interest and T is the time period.So, I = \frac{100 * 10 * 3}{100}I=100100∗10∗3

                 = Rs.30=Rs.30

The amount that she receives at the end of three years will be,

        Rs. 100 +Rs. 30 = Rs. 130Rs.100+Rs.30=Rs.130

Therefore, Tessa will have Rs. 130 in 3 years.