Question

sarah recives an inheritance of 180000.she decided to invest this for the next five years as part of her saving plan for a housing deposit. The first year she puts the money in the bank and earns 5.75% per annum interest.How much does she have at the end of the first year ?

Answer 1

Answer: 10350

Explanation:

Amount invested = Principal = 180,000

Interest rate = 5.75%

Time = 1 year

The interest that is earned at the end of the first year will be:

= PRT

= 180,000 × 5.75% × 1

= 180,000 × 0.0575 × 1

= 10350