Question

A bank pays 5% simple interest per annum for deposit account.If Ahmed deposit 200 naira in the bank for two years , What will be his total amount in the bank at the end of Two years​

Answer 1

• Principal=P=200
• Rate of interest=R=5%
• Time=2years=T
• Interest be I

`\\ \rm\Rrightarrow I=(PRT)/(100)=(200(5)(2))/(100)={20}`

Total:-200+20=220

Answer 2

total amount will be 2200 naira after two years.

Explanation:

`total \ amount = P (1 + rt)` ...make sure time is in years and rate in percentage.

using the formula:

`200(1+5*2)`

`200(11)`

`2200`

Here "P" is principal, "r" is rate of interest and "t" is time in years.