Question

Dan invests £18790 into his bank account. He receives 4.9% per year simple interest. How much will Dan have after 3 years?

Answer 1

£21,552.13

Explanation:

A = P(1 + rt)

P = £18790

r = 0.049 (rate in percent form)

t = 3 years

A = £18790(1 + (0.049)(3))

A = £18790(1 + 0.147)

A = £18790(1.147)

A = £21,552.13