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nadya68 [22]
3 years ago
7

Stephan places £950 in his bank account which pays 1.6% simple interest per year.

Mathematics
1 answer:
ella [17]3 years ago
8 0

Answer:

A. He will earn £15.2 each year

B. After one year he will have £965.2 in his account

Step-by-step explanation:

Applying the simple interest formula

A = P (1 + rt)

A = final amount

P = initial principal balance

r = annual interest rate

t = time (in years

Given data

Principal p= £950

Rate r= 1.6% =1.6/100= 0.016

Time t= 1 year

Substituting in our simple interest formula we have

A= 950(1+0.016*1)

A= 950(1+0.016)

A= 950(1.016)

A= £965.2

Interest = final amount - principal

= 965.2-950

= £15.2

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