Simple Interest

Question 1

Alice invests £2500 for 2 years in a savings account. She was paid 1.8% compound interest per annum.

How much interest does Alice earn over the two years?

Answer 1

2500 x 1.018^2 = 2590.81

Question 2

Leah invests £4500 for 3 years in a savings account. She was paid 2.6% compound interest per annum. How much does she have in her savings account after 3 years?

Answer 2

4500 x 1.026^3 = £4860.21

Question 3

Jack invests £6000 for 3 years in a savings account. He was paid 3.4% compound interest in the first year and 0.8% compound interest for each year after. How much interest does jack earn over 3 years?

Answer 3

6000 x 1.034 = 6204
6204 x 1.008^2 = 6303.66

6303.66 - 6000 = 303.66