Question

Colin invest in £5000 into his bank account. He receives 10% per year simple interest. How much will Colin have after 3 years?

Answer 1

£6655

Explanation:

Given data

Principal= £5000

Rate= 10%

Time = 3 years

FInal Amount A=???

The expression for the compound interest is given as

A=P(1+r)^t

substitute

A=5000(1+0.1)^3

A=5000(1.1)^3

A=5000*1.331

A= £6655

Hence the final Amount is £6655