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19 July, 07:07

Edin has £300 in his savings account. His bank offers him a fixed 5% simple interest rate per annum, for a period of 3 years. How much interest will he have earnt after 3 years?

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  1. 19 July, 08:23
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    Answer: her interest in 3 years is $45

    Step-by-step explanation:

    For simple interest, the principal is not compounded. The interest is only on the original capital. The formula for simple interest is expressed as

    I = PRT/100

    Where

    I represents the interest on the principal

    P represents the initial amount

    R represents the interest rate.

    T represents the time in years.

    From the information given

    P = $300

    R = 5%

    T = 3 years

    I = 300*5*3) / 100

    I = 4500/100 = 45
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