Question

Neil places £2000 in a bank account that pays 1.5% simple interest per year.How much interest will he earn in 6 years?

Answer 1

180

The answer is 180

the formula to calculate simple interest is:

Interest= principal * rate * time

Answer 2

£ 180

Solution,

Principal( P)= £ 2000

Rate (R)= 1.5%= 1.5/100

Time (t)= 6 years

Interest=?

Now,

`interest = principal * rate * time \\ \: \: \: \: = 2000 * (1.5)/(100) * 6 \\ \: \: = 180`

Therefore, he will earn £ 180 in 6 years.

Hope this helps..

Good luck on your assignment..