Question

£1500 is invested for 3 years at 2% per year simple interest. Work out the total interest.

Answer 1

£90

Explanation:

Simple interest (I ) is calculated as

I =
`(PRT)/(100)` ( P is principal, R is rate of interest and T time in years )

Here P = 1500, R = 2 and T = 3 , then

I =
`(1500(2)(3))/(100)` = 15 × 2 × 3 = 30 × 3 = £90

Answer 2

2÷100=0.02

1500×0.02=30

30×3=90