Question

Mr. Mitchell deposited $40,000 in a bank and earned simple interest at 7% per anum for two years.calculate the amount he will receive at the end of the two year period

Answer 1

Principle amt(P) = $40,000
Rate of interest(R)= 7%
Time(T) = 2 years
Simple Interest (I) = PRT/100
= 40,000*7*2/100
= $5600
Amount(A) = P + I
= $40,000 + $5600
= $45,600

Answer 2

7/100*40000=2800*2
=5600
40000+5600=$45600