Question

Colin invests £1100 into his bank account. He receives 5% per year simple interest. How much will Colin have after 6 years? Give your answer to the nearest penny where appropriate.

A) £1210
B) £1150
C) £1265
D) £1106

Answer 1

Colin will have £1430 after 6 years with 5% simple interest.

Step-by-step explanation:

To calculate the total amount Colin will have after 6 years with 5% simple interest, we can use the formula:

Total amount = Principal + Principal * Interest Rate * Time

Where Principal is £1100, Interest Rate is 0.05, and Time is 6 years. Plugging in these values, we get: Total amount = £1100 + £1100 * 0.05 * 6 = £1100 + £330 = £1430.

So Colin will have £1430 after 6 years. Therefore, none of the given answer options (A, B, C, D) are correct.