Question

Connor invests £1500 of his money for 2 years at a simple interest rate of 10%.

How much money will he get back in interest?

Answer 1

Answer:

£300

Explanation:

Simple interest is computed using the formula …

I = Prt

where P is invested at rate r for t years.

Using the given values, the interest is …

I = £1500·0.10·2 = £300

Connor will get back £300 in interest.

Answer 2

The money Connor gets back in interest is £300

Explanation:

The formula for calculating the interest is,

I = (P)(R)(T)

Where R is the interest rate (yearly usually)

P is the principal amount or the original amount

T is the Total time

In our case,

T = 2

R = 10% = 0.1

P = 1500

So,

I = (1500)(0.1)(2)

I = 300

Hence, The money he gets back in interest is £300