Question

Mr Parsad places £1007 into a

savings account and gains 8%
interest per annum. How much
money is in the account after 9
year?

Answer 1

$ 1,732.04

Explanation:

A = $1,732.04

I = A - P = $725.04

Equation:

A = P(1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 8%/100 = 0.08 per year.

Solving our equation:

A = 1007(1 + (0.08 × 9)) = 1732.04

A = $1,732.04

The total amount accrued, principal plus interest, from simple interest on a principal of $1,007.00 at a rate of 8% per year for 9 years is $1,732.04.