Question

Colin invests £980 into his bank account. He receives 2.1% per year simple interest. How much will Colin have after 4 years? Give your answer to the nearest penny where appropriate

Answer 1

1062.32. that's how much he will have after 4 years

Answer 2

Colin will have £1,062.32 after 4 years.

What is simple interest?

Simple interest is the type of interest in which the accumulated interest amount is not taken into consideration while adding the interest.

It is given by:

SI = P*r*T/100

We can find the amount as follows:

The amount that Colin invests is given as £980.

The rate of interest is given as 2.1%.

The amount is deposited for 4 years.

The total amount in the bank after 4 years can be given by:

Amount = P + P*r*T/100

= P(1 + 2.1*4/100)

= 980(1 + 0.084)

= 980 * 1.084

= £1,062.32

The total amount that Colin would have after 4 years is found. The Amount that Colin would have is equal to £1,062.32.

Therefore, we have found that Colin will have £1,062.32 after 4 years.

Learn more about simple interests here: https://brainly.com/question/25793394

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