Question

Of 10

Colin invests £980 into his bank account. He receives 6% per year simple
interest. How much will Colin have after 7 years? Give your answer to the nearest
penny where appropriate.

Answer 1

There is a formula that you need to use to answer this question.

(using calculator)

original × (100×rate/100)^years

`980( (100 + 6)/(100)) {}^(2)`

= £1101.1

Answer 2

1008.56

Explanation:

0.06nmultiplied by £980 = £4.08

4.08 multiplied by 7 (the number of years = 28.56

then £28.56+£980=1008.56