Asked by kelvin

Asha deposited sh. 280,000 into the bank.After 4 years her savings reached sh. 386,400.Find the amount of interest per year paid by the bank.
#Please i need your help guys #

Answers

Answered by Kabir
Principal Amount = P = 280,000
Final Amount = F = 386,400
Years = T = 4
Simple Interest = SI = F - P = 106,400
Rate = R

SI = P x R x T
R = SI/(P x T) = 106,400/(1,120,000)
= 0.095
= 9.5%

Use that to find the amount per year
Answered by kelvin
Why we should find for percent the interest while we have asked to find the amount of interest please can you explain to me which word imply the required is percentage interest
Answered by Steve
Good question. The problem implies the same amount paid every year, so it'll be simple interest.

The total interest paid was 106400 over 4 years. Just divide that by 4 to get the annual interest paid.
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