Math CentralQuandaries & Queries


Question from Gerry:

Calculate the amount of interest received on £120.00 desposited in an account paying 3% simple interest for three years.

Hi Gerry.

With simply interest, the principal never changes.  The original
deposit amount is what is used to calculate the interest.

Here's an example just like your question:
Q. What is the amount of interest received on  £1 000 deposited in an
account paying 5% simple interest for seven years?
A. Each year, you get 5% of £1 000, so the total interest is 7 x 5% x
£1 000.  Remember that 5% means 0.05 or (5/100).  So this is 7 x 0.05
x £1 000 = £350.

Now you try it with your figures.
Stephen La Rocque.
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