Question

Colin invests £980 into his bank account. He receives 6% per year simple interest. How much will Colin have after 7 years? Give your answer to the nearest penny where appropriate.

Answer:
Explanation:
Solving steps:

Answer 1

Colin have £ 1392 in his bank account after 7 years.

Explanation:

Given, Principal = P = £ 980

Rate of interest = R = 6% = = 0.06

Time = T = 7 years

Amount = A = P + S.I

Simple Interest = S. I = PRT = 980 x 0.06 x 7 = £ 411.6

Amount after 7 years = £ 980 + £ 411.6 = £ 1391.6 ≈ £ 1392

Hence, Colin have £ 1392 in his bank account after 7 years.