Question

Sami invests £400 for 2 years at 5% per year simple interest. Work out the total interest Sami gets. ​

Answer 1

`~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \pounds 400\\ r=rate\to 5\%\to (5)/(100)\dotfill &0.05\\ t=years\dotfill &2 \end{cases} \\\\\\ I = (400)(0.05)(2) \implies I = 40`