Question

Jordan invests £2400 into his bank account.
He receives 2.5% per year simple interest.
How much will Jordan have after 6 years?
Give your answer to the nearest penny where appropriate.

Answer 1

Answer: £2760

Step-by-step explanation:

Use the formula: $A=P(1+rt)$.

A = final amount

P = initial amount invested

r = annual interest rate

t = time (in years)

Insert all values in appropriate places.

$A=2400(1+(0.025)(6))$

Simplify.

$A=2400(1+(0.025)(6))$

$A=2400(1+0.15)$

$A=2400(1.15)$

$A= 2760$

£2760 is the answer.