Question

Ahmad puts aed 1,500 into a savings account. the account pays 2% simple interest. how much interest will he earn in 4 years?

Answer 1

Ahmad will earn AED 120 in interest over 4 years by depositing AED 1,500 in a savings account with a 2% simple interest rate.

Step-by-step explanation:

The question asks how much interest will be earned on an initial deposit of AED 1,500 at a simple interest rate of 2% over 4 years. To calculate the simple interest, you would use the formula:

Simple Interest = Principal × Rate × Time

Here, the principal is AED 1,500, the rate is 2% (or 0.02 when converted to a decimal), and the time is 4 years. Plugging these into the formula gives us:

AED 1,500 × 0.02 × 4 = AED 120

So, Ahmad will earn AED 120 in interest over the 4 years.