Question

You deposit £345 in to a bank account paying 7% simple interest per year. How much interest would you earn after 5 years?

Answer 1

First find 7% annual simple interest by multiplying £345 by 0.07 to work out our interest of £24.15 per year.

So the interest earned after 5 years which will be 5 x 24.15 = £120.75.