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Likurg_2 [28]
3 years ago
14

In how many years will the interest on £100 at 6% amount to £12?

Mathematics
2 answers:
PtichkaEL [24]3 years ago
7 0
6% is 6 for every hundred. Because we have 100, that means that it the interest will be 6 more each year. 12/6 = 2, so 2 years.
NOTE: that is only simple interest. Compound interest is different. Compound interest is when you earn interest on your interest, so after 1 year you would have 106, and then you would get 6% of that 106.
lesya [120]3 years ago
3 0
Given:
Principal = <span>£100
Interest rate = 6%
Interest = </span><span>£12

Simple Interest is computed by multiplying the principal by its interest rate and term

Interest = Principal * rate * term
12 = 100 * 0.06 * term
12 = 6 * term
12/6 = term
2 = term

It will take 2 years for </span>£100 to earn <span>£12 at 6%</span>
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