Question

Stephan places £950 in his bank account which pays 1.6% simple interest per year.

A)How much interest will he earn each year
B) Hiw much will he have in his account after 1 year

Answer 1

Answer: see below

Explanation:

(A. the question states that he gets %1.6 interest in 1 year. To find how much initerrest that is as a nummber, simply find 1.6% of 950.

1.6% of 950= 0.016x950= £15.2

Answer: He earns £15.2 in interest per year, which is the equivalent of 1.6 of £950

(B. Question: Total money in account after 1 year?

Step 1: Find how much interest he makes in 1 year

We already know its £15.2. See above for the computation

Step 2: Add that to the principal (how much money he started with; mind you the £950 pounds was never taken away)

950+15.2= £965.2

Answer: £965.2