Question

Daniel invests £2200 into his bank account.

He receives 5% per year simple interest.
How much will Daniel have after 2 years?

Answer 1

I = $ 220.00

Explanation:

I = $ 220.00

Equation:

I = Prt

Solve:

First, converting R percent to r a decimal

r = R/100 = 5%/100 = 0.05 per year,

then, solving our equation

I = 2200 × 0.05 × 2 = 220

I = $ 220.00

The simple interest accumulated

on a principal of $ 2,200.00

at a rate of 5% per year

for 2 years is $ 220.00.