Question

Simon invested an amount of money in a savings account at 0.5% per annum compound interest. At the end of 3 years, the amount of money in the savings account was £12180.90 Work out how much money Simon invested in the savings account.

Answer 1

Answer:

£ 182.71.

Step-by-step explanation:

First, converting R percent to r a decimal

r = R/100 = 0.5%/100 = 0.005 per year,

then, solving our equation

I = 12180.9 × 0.005 × 3 = 182.7135

I = £ 182.71

The simple interest accumulated

on a principal of £ 12,180.90

at a rate of 0.5% per year

for 3 years is £ 182.71.