Question

Savings account pays 3.6% per annum simple interest. Heidi puts £400 into the bank. How much will she have in the account after five years?

Answer 1

$472

Explanation:

Given data

Rate= 3.6%

Principal= £400

Time = 5 years

Let us apply the simple interest expression for the final amount A

A= P(1+rt)

substitute

A=400(1+0.036*5)

A=400(1+0.18)

A=400*1.18

A=$472

Hence she will have $472 in her account after 5 years