1. Natasha invests £250 in a building society account. At the end of the year her account is credited with 2% interest. How much
interest had her £250 earned in the year? 2. Alan invests £140 in an account that pays r% interest. After the first year he receives £4.20 interest. What is the value of r, the rate of interest?
3. What is the actual rate of interest if £4000 deposited for 3 years attracts interest of £1440?
4. I deposit £250 in a high-earning account paying 9% compound interest and leave it for three years. What will be the balance on the account at the end of that time?
5. You borrow £500 for four years and agree to pay 6 1 2 % compound interest for this period. What amount will you have to pay back?
1. Natasha invests £250 in a building society account. At the end of the year her account is
credited with 2% interest. How much interest had her £250 earned in the year?
Solution: Interest = 2% of £250
= 2/100 x £250
answer = £5
2. Alan invests £140 in an account that pays r% interest. After the first year he receives £4.20 interest. What is the value of r, the rate of interest?
