Question

£2200 is deposited in a bank paying 0.5% simple interest per annum. How much interest will have been paid after 18 years?

Answer 1

The answer would be £198

principal (p) = 2200

Rate (R) = 0.5%

Time (T) = 18

Interest(I) = ?

Now,

or, Interest. = P×T×R/100

or, Interest = 2200×18×0.5/100

or, Interest = 19800/100

Hence, Interest = 198