Question

Dan invests £13000 into his bank account. He receives 4,7% per year simple interest. How much will Dan have after 6 years? Give your answer to the nearest penny where appropriate,​

Answer 1

Simple interest formula:

Total = start value x (1 + (rate x time))

Total = 13,000 x (1 + (0.047 x 6))

Total = 13000 x 1.282

Total = £16,666