Question

Colin invests £1200 into his bank account.

He receives 10% per year simple interest.
How much will Colin have after 3 years?
Give your answer to the nearest penny where appropriate.

Answer 1

The answer is after 3 years he will have £3960,00


Hope this will help you! :)

Answer 2

After 3 years, he will have £3960,00

Explanation:

Simple interest is defined as:

`a = p(1 + rt)`

Where:

a = final amount

p = principal / original amount

r = decimal rate of interest

t = number of years

Therefore:

`a = 1200(1 + 0.1)(3) \\ = 1200(1.1)(3) \\ = 3600 * 1.1 = 3960`