Question

I have £150 in a bank account. I get 5% interest a year. How much will I have at the end of the year?

Answer 1

£157.5

Explanation:

To solve this problem, we simply multiply £150 by 5% and then add the sum to £150 to get the answer. Remember that we need to put 5% into the decimal form (5% -> 0.05).

£150 x 0.05 = 7.5

Now we can add 7.5 to £150.

£150 + 7.5 = £157.5