Question

Edin has £300 in his savings account.his bank offers him 5% simple intrest rate ped annum for a period of 3 years.how much intrest will he make after 3 years

Answer 1

Answer:

$45

Step-by-step explanation:

We are given the following information;

• Money invested (Principal) is $300
• Rate of interest is 5% per annum
• Time the money is invested is 3 years

We need to determine the amount of interest the money will earn after three years.

• Simple interest is calculated by the formula;
• Simple interest =(PRT) ÷ 100, Where P is the principal amount, R is the rate of interest and T is the time.

Therefore, in this case;

Simple interest = ($300 × 5 × 3) ÷ 100

                         = $45

Thus, the money invested earned a simple interest of $45