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Financial Maths, SMB-009

Pamela deposits $2000 into a savings account which earns simple interest at the rate of 2.5% per annum.

No deposits or withdrawals are made from this account.

After 2 years, how much is in Pamela's savings account?  (2 marks)

--- 4 WORK AREA LINES (style=lined) ---

Show Answers Only

`$2100`

Show Worked Solution
`text(Interest earned)` `= Prn`
  `= 2000 xx 2.5/100 xx 2`
  `= $100`

 

`:.\ text{Account balance}` `= 2000 + 100`
  `= $2100`

Filed Under: Simple Interest Tagged With: num-title-ct-corea, smc-4332-10-Find interest

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