Question

Dan invests £1600 into his bank account. He receives 3.5% per year simple

interest. How much will Dan have after 2 years? Give your answer to the
nearest penny where appropriate.

Answer 1

171200 pennies

Explanation:

Amount after 2 years = Principal + Interest

Given

Principal = £1600

Rate = 3.5%

Time = 2years

Get the interest

Interest = PRT/100

Interest = 1600*3.5*2/100

Interest = 32 * 3.5

Interest = £112

Get the amount after 2 years;

Recall that:

Amount after 2 years = Principal + Interest

Amount after 2 years = 1600 + 112

Amount after 2 years = £1712

Hence the amount Dan will have after 2 years is £1712

1712 pounds = (1712 * 100)penny

1712 pounds = 171200 pennies