Question

Becky invests £5000 for 2 years in a bank account.

She gets simple interest at a rate of 3% per year,


Work out the total amount of interest Becky gets by the end of 2 years.

Answer 1

£300

Explanation:

We apply the formula for Simple Interest:

`I = (P * R * T)/(100)`

where P = Principal

R = Rate of interest

T = Time elapsed (in years)

We are given that P = £5000, R = 3%, T = 2 years

The interest after 2 years will be:

`I = (5000 * 3 * 2)/(100) \\\\\\I = (30000)/(100)`

I = £300

The interest Becky will get after 2 years will be £300.