Question

Brain invests £2500 into his bank account he receives 2.5% per year simple interest how much will Brian have after 5 years give your answer to the nearest penny where appropriate

Answer 1

Explanation:

Rate of interest = r = 2.5%

The amount invested = P = £ 2500

Number of years = n = 5 years

`Simple \ Interest = P*r*t`

`=2500*(2.5)/(100)*5\\\\\\= 25 * 2.5*5`

= £ 312.5

Amount that Brain will have after 5 years = P + simple interest

= 2500 + 312.5

= £2812.50