Question

£2600 is deposited in a bank paying 5% simple interest per annum.

Answer 1

Answer:

£520

Step-by-step explanation:

2600 × 1.05 = £2730 We work out how much interest he receives in one year. To do this, we find a decimal multiplier using 5%. We divide 5 by 100, giving us 0.05 and then add 1 to that. The 1 represents the increase of interest.

2730 - 2600 = 130 We subtract to find out how much interest has been gained already.

130 × 4 = £520 Now we multiply that by the number of years to predict how much interest he will inherit by the end of the 4 years.

I hope this helps!! ^-^