Question

Nile’s places £4000 in a bank account that pays 2.5% simple interest per year how much interest will he earn in 4 years

Answer 1

`~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \pounds 4000\\ r=rate\to 2.5\%\to (2.5)/(100)\dotfill &0.025\\ t=years\dotfill &4 \end{cases} \\\\\\ I = (4000)(0.025)(4)\implies I=400`