Question

Leroy deposits £230 into an account which pays 5 percent simple interest per year.

How much will be in the account after one year?
Please help>"

Answer 1

Amount in account after one year = £241.5

Explanation:

Given:

Amount deposit into bank = £230

Rate of yearly interest = 5% Simple interest per year

Number of year = 1 year

Find:

Amount in account after one year

Computation:

Simple interest = Amount deposit x Rate of yearly interest x Number of year

Simple interest = 230 x 5% x 1

Simple interest = 230 x 0.05

Simple interest = £11.5

Amount in account after one year = Amount deposit into bank + Simple interest

Amount in account after one year = 230 + 11.5

Amount in account after one year = £241.5