Question

Omar invests £2800 for 3 years at 1.75% simple interest per year.

How much is the investment worth at the end of the 3 years?

Answer 1

£2947

Explanation:

the formula for simple interest is interest = prt.

p is the principal value, or what omar had at the beginning.

r is the rate at that you gain interest.

t is the amount of time in years.

so, plugging in our values, we multiply 2800*3*0.0175 to get 147.

now, since that was the amount of interest omar gained, we still have to add the original amount that he had, and 2800+147 = 2947.

so, the answer is £2947.