Question

Dan invests £18790 into his bank account. He receives 4.9% per year simple interest. How much will Dan have after 3 years? Give your answer to the nearest penny where appropriate.

Answer 1

Answer:

£21552.

Step-by-step explanation:

Given information:

Principal amount = £18790

Rate of simple interest =4.9% = 0.049 per year

Time = 3 years

Formula for simple interest:

$I=P\times r\times t$

where, P is principal, r is rate of interest and t is time in years.

$I=18790\times 0.049\times 3$

$I=2762.13$

Total amount after 3 year is

$A=P+I$

$A=18790+2762.13$

$A=21552.13$

$A\approx 21552$

Therefore, Dan have £21552 after 3 years.