Question

Dan invests £11000 into his bank account.

He receives 7.5% per year simple interest.
How much will Dan have after 3 years?
Give your answer to the nearest penny where appropriate.

Answer 1

£13,475

Explanation:

A = P(1 + rt)

P = £11000

r = 0.075 (percent in decimal form)

t = 3 years

A = £11000(1 + (0.075)(3))

A = £11000(1 + (.225))

A = £11000(1.225)

A = £13,475