Question

Naneth deposited php1. 200in a savings account that pays 4%interest in 1 year. How much interest will her money earn in a year?

Answer 1

Answer: 8

Explanation:

Given

Money deposited
`P=200`

Interest rate
`R=4\%`

Time period
`T=1\ yr`

For a year simple and compound interest is the same

`\therefore \text{Interest}=(P* R* T)/(100)\\\\\Rightarrow \text{Interest}=(200* 4* 1)/(100)\\\\\Rightarrow 8`

Thus, interest earned is 8 units