Question

What is the balance for £5000 invested for 5 years at 7% per annum?

Answer 1

Asumming simple interest rate.

$\bf ~~~~~~ \textit{Simple Interest Earned Amount}\\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to& 5000\\ r=rate\to 7\%\to \frac{7}{100}\to &0.07\\ t=years\to &5 \end{cases} \\\\\\ A=5000[1+(0.07)(5)]\implies A=5000(1.35)$