



 
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.  


Math Central is supported by the University of Regina and The Pacific Institute for the Mathematical Sciences. 