Question

Ryan invested some money in his bank he agreed a simple interest rate of 4% per annum for a 2 years At the end of the 2- years period the value of his investment increased by ?24

Answer 1

$\bf ~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \ P\\ r=rate\to 4\%\to \frac{4}{100}\dotfill &0.04\\ t=years\dotfill &2 \end{cases} \\\\\\ I=P(0.04)(2)\implies I=0.08P\implies \stackrel{\textit{converting it to percentage}~\hfill }{0.08\cdot 100\implies 8\%\textit{ of original }P}$