Question

Colin invests £1100 into his bank account. He receives 5% per year simple interest. How much will Colin have after 6 years?

Answer 1

£1430

Explanation:

Given data

Principal =£1100

Rate= 5%

time = 6 years

The simple interest formula is

A=P(1+rt)

substitute

A=1100(1+0.05*6)

A=1100(1+0.3)

A=1100(1.3)

A=1100*1.3

A=£1430

Hence the balance is £1430