Question

Edwin 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 internet will he have earned after 3 years?

Answer 1

Answer: £45

Explanation:

First find the amount of simple interest in on year:

= Amount * simple interest rate

= 300 * 5%

= £15

Now that you have the annual interest, the 3 year interest is:

= 15 * 3 years

= £45