Question

Colin invests £9100 into his bank account.

He receives 2.5% per year simple interest.
How much will Colin have after 3 years?
Give your answer to the nearest penny where appropriate.​

Answer 1

The total amount accrued, principal plus interest, from simple interest on a principal of $9,100.00 at a rate of 2.5% per year for 3 years is $9,782.50.

Explanation:

Principle amount = P = £9100

interest rate = r = 2.5% per year

Time period = t = 3

Simple Interest = 9100 × 2.5% × 3 = £682.5

Total amount = Principal amount + Simple interest

= 9100 + 682.5

= £9782.5

Therefore, the total amount accrued, principal plus interest, from simple interest on a principal of £9,100.00 at a rate of 2.5% per year for 3 years is £9,782.50.