Question

Edin has £300 in his savings account.

His bank offers him a fixed 5% simple interest rate per annum, for a period of 3 years.
How much interest will he have earned after 3 years?

Answer 1

Answer:

£45

Step by step explanation:

The formula for simple interest is:

I = P * r * t

where I is the interest earned, P is the principal amount, r is the annual interest rate, and t is the time period in years.

Using this formula, we can calculate the interest earned by Edin after 3 years:

I = 300 * 0.05 * 3
= 45

Therefore, Edin will have earned £45 in interest after 3 years.

Answer 2

£45

Step-by-step explanation:

To calculate the amount of interest Edin will earn after 3 years at a fixed 5% simple interest rate per annum, we can use the formula:

Interest = Principal x Rate x Time

Where:

Principal is the amount of money in Edin's savings account, which is £300

Rate is the interest rate per annum, which is 5%

Time is the period of time for which the interest is calculated, which is 3 years

Plugging these values into the formula, we get:

Interest = £300 x 0.05 x 3

Interest = £45

Therefore, Edin will have earned £45 in interest after 3 years at a fixed 5% simple interest rate per annum. His total savings at the end of the 3-year period will be the sum of the initial savings and the interest earned, which is:

Total savings = £300 + £45 = £345