Question

smeone invests £800 at a rate of 2% simple interest per year. Work out the amount of interest she receives after three years.

Answer 1

the simple interest earned was £48.

Explanation:

the appropriate simple interest formula is i = prt, where r is the annual interest rate as a decimal fraction. Here, with prt = (£800)(0.02)(3 yr), we find that the simple interest earned was £48.

Answer 2

£48

Explanation:

I=Prt

I=(800)(0.02)(3)

I = 48