Question

Lindy puts £ 78 into an account which pays inrerest at a rate of 5% per anum. What will be the simple interest after 6 years .what will be the amount in her account after 6 years .

Answer 1

Interest: £23.4

Amount: £101.4

Explanation:

6 × 5/100 × 78 = 23.4

Balance: 78 + 23.4 = 101.4

Answer 2

£101.4

Explanation:

Interest = PRT/100

Given

Principal P = £78

Time T = 6yrs

Rate R = 5%

Interest = 78 x 5 x 6 /100

Multiply through

= 2340/100

= 23.4

= £23.4

Amount after 6 yrs = principal + interest

= £78 + £23.4

= £101.4