Question

Ali invests £400 for 5 five years in a savings account. The account pays simple interest at a rate of 3.5% per year. Work out the total amount of interest Ali gets.

Answer 1

Interest=P×T×R/100

400×1×3.5/100

=$14

5 years interest=14×5

=$70

Explanation:

Answer 2

400 x (1 + 3.5%)^5 = £475.07

She makes £75.07 in interest