Question

Colin invests £980 into his bank account. He receives 2.1% per year simple interest. How much will Colin have after 4 years? Give your answer to the nearest penny where appropriate.

Answer 1

Explanation:

980(1+.021*4)= 1062.32

Answer 2

£1062.32

Explanation:

Principle : £980

Simple Interest Rate : 2.1% / year

Duration : 4 years

Equation: £980(0.021)(4) + £980

Solve:

£980(0.021)(4) + £980 =

£980(0.084) + £980 =

£82.32 + £980 = £1062.32

-Chetan K