Question

Delyth borrows £3450 from a family member who charge her 2% per year simple interest. She pays all the money back in one payment after 1 year 3 months. How much interest does Delyth pay?

Answer 1

simple interest = principal × rate × time in years

= 3450 × (2/100) × ( 1.25)

= 3450 × 0.02 × 1.25

= 86.25