Question

Colin invests £4000 into his bank account.

He receives 5% per year simple interest.
How much will Colin have after 3 years?

Answer 1

4,600

Explanation:

A = P(1 + rt)

P = 4000

r = 0.05 (rate in percent form)

t = 3 years

A = 4000(1 + (0.05)(3))

A = 4000(1+0.15)

A = 4000(1.15)

A = 4,600