Question

Naneth deposited php1. 200in a savings account that pays 4%interest in 1 year. How much interest will her money earn in a year?

Answer 1

Answer: 8

Step-by-step explanation:

Given

Money deposited $P=200$

Interest rate $R=4\%$

Time period $T=1\ yr$

For a year simple and compound interest is the same

$\therefore \text{Interest}=\dfrac{P\times R\times T}{100}\\\\\Rightarrow \text{Interest}=\dfrac{200\times 4\times 1}{100}\\\\\Rightarrow 8$

Thus, interest earned is 8 units