Question

Rob saves £500 in his bank account.

The bank pays 4% simple interest
per year.
a) How much interest will he have
earned after five years?
b) How much money will he have in
the bank after five years?

Answer 1

step 1: =4% of £500

=20

=20 × 5 years

= 100

= £500 + £100

=£600 ....therefore Rob will have £600 in his bank account after years.