Question

Jordan invests £16200 into his bank account

He receives 2.5% per year simple interest.
How much will Jordan have after 5 years?
Give your answer to the nearest penny where appropriate​

Answer 1

£18,225

Explanation:

2.5% of £16,200 = £405

10% of £16,200 = £1,620

5% of £16,200 = £810

5 years: 16,200 + 5 x 405 = £18,225

Answer 2

18225

Use the formula: .

A = final amount

P = initial amount invested

r = annual interest rate

t = time (in years)

Insert all values in appropriate places.

Simplify.

A=16200(1+(0.025)(6))