Question

© ? Jordan invests £2100 into his bank account. He receives 5.1% per year simple interest. How much will Jordan have after 2 years? Give your answer to the nearest penny where appropriate.​

Answer 1

£2314.20

Explanation:

Simple interest formula: A = P(1 + rt)

where:

• A = final amount
• P = principal amount
• r = annual interest rate (as a decimal)
• t = time (in years)

Given:

• P = £2100
• r = 5.1% = 0.051
• t = 2 years

⇒ A = 2100(1 + 0.051 · 2)

⇒ A = 2100(1.102)

⇒ A = £2314.20