Question

Dan invests £2200 into his

bank account.
He receives 5% per year simple intrest.
How much will dan have after
2 years?
give your answer to the nearest penny
ühere appropriate

Answer 1

the simple interest here would be $220. the total amount he will receive is $2,420.

Explanation:

to find how much interest Dan has, you use the formula,

simple interest = principal * interest rate * time

now we substitute the numbers in.

simple interest = $2,200 * 5% * 2

since the rate is a percentage, we have to convert it into a decimal.

simple interest = $2,200 * 0.05 * 2

let's do this step by step.

simple interest = $2,200 * 0.05 * 2

simple interest = $110 * 2

simple interest = $220

to find out how much Dan will earn after two years, we have to find the total amount by adding the interest and the amount of principal.

since we now know the interest, let's add it by the principal.

$220 + $2,200 = $2,420

Therefore, Dan will have $2,420 after two years.