Question

Riley put £450 into a savings account which

gathered simple interest at a rate of 2% per month.
After 6 months, Riley used some of the money in
the account to buy a bike costing £480.
How much money did Riley have left?

Answer 1

£26.77

Explanation:

450(100% + 2%)^6

= 450 (1.02)^6

= 506.77.

506.77 - 480 - 26.77.

Riley had £26.77 left.