Question

Colin invests £1200 into his bank account.

He receives 5% per year simple interest.
How much will Colin have after 3 years?
Give your answer to the nearest penny where appropriate.

Answer 1

`~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \pounds 1200\\ r=rate\to 5\%\to (5)/(100)\dotfill &0.05\\ t=years\dotfill &3 \end{cases} \\\\\\ A = 1200[1+(0.05)(3)]\implies A=1200(1.15) \implies A = 1380`