Question

Remi invests £600 for 5 years in a savings account.

By the end of the 5 years he has received a total of £75 simple interest.

Work out the annual rate of simple interest

Answer 1

225600

Explanation:

Simple interest formula:

A = P(1 + rt)

A = final amount

P = initial principal balance

r = annual interest rate

t = time (in years)

So...

A = 600(1 +(75 x 5) )

75 x 5 = 375

1 + 375 = 376

600 x 376 = 225600

A = 225600