Answer:
A. He will earn £15.2 each year
B. After one year he will have £965.2 in his account
Step-by-step explanation:
Applying the simple interest formula
A = P (1 + rt)
A = final amount
P = initial principal balance
r = annual interest rate
t = time (in years
Given data
Principal p= £950
Rate r= 1.6% =1.6/100= 0.016
Time t= 1 year
Substituting in our simple interest formula we have
A= 950(1+0.016*1)
A= 950(1+0.016)
A= 950(1.016)
A= £965.2
Interest = final amount - principal
= 965.2-950
= £15.2
