Question

Billy invests £800 for 5 years in a savings account.

Answer 1

Answer:

2.4%

Step-by-step explanation:

Simple interest (I) is calculated as

I = $\frac{PRT}{100}$

where P is the principal, R the rate of interest and T time in years

Here I = 96, P = 800 and T = 5, thus

96 = $\frac{800R(5)}{100}$ = $\frac{4000R}{100}$ = 40R ( divide both sides by 40 )

R = $\frac{96}{40}$ = 2.4%