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lys-0071 [83]
3 years ago
6

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 intre

st will he make after 3 years
Mathematics
1 answer:
Marianna [84]3 years ago
3 0

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

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