Question

Vinny invested 25,000 in a account that earns 4.25% simple interest. If Vinny doesn’t make any additional deposits or withdrawals, how much interest will he have in 9 years?

Answer 1

The interest gained by Vinny in 9 years = Rs. 9562.5

Explanation:

Money invested in bank account, P = Rs. 25000

Rate of interest, r = 4.25 %

Number of years, r = 9

Accoridng to simple interest formula,

Interest gained =
`(Pnr)/(100)` =
`((25000)(9)(4.25))/(100)`

= Rs. 9562.5

Total amount in the bank after 9 years = 25000 + 9562.5

=Rs. 34562.5