Question

10 of 10

© Colin invests £980 into his bank account. He receives 1.1% per year simple

interest. How much will Colin have after 7 years? Give your answer to the nearest

penny where appropriate.

Answer 1

Answer:

Colin will have $1055.46 after 7 years.

Step-by-step explanation:

This is a simple interest problem.

The simple interest formula is given by:

$E = P*I*t$

In which E are the earnings, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.

After t years, the total amount of money is:

$T = E + P$.

In this question:

$P = 980, I = 0.011, t = 7$

So

$E = P*I*t$

$E = 980*0.011*7$

$E = 75.46$

Total

$T = E + P = 980 + 75.46 = 1055.46$

Colin will have $1055.46 after 7 years.